China’s stock market boom has cooled off after investors were left dissatisfied by the much-awaited unveiling of plans to revive the flagging economy.

China’s stock market boom has cooled off after investors were left dissatisfied by the much-awaited unveiling of plans to revive the flagging economy.

After the Golden Week holiday, shares had increased by more than 10% as trading resumed, but they later declined following a press conference by the nation’s economic planners.

The Shanghai Composite Index in mainland China ended the day 4.6% higher after a wild day of trading, while the Hong Kong Hang Seng fell 9.4%.

Although the announcement provided little specifics, investors had been looking for additional information about how the government intends to boost economic growth.

China is “fully confident” that it will meet its full-year economic and social targets, according to Zheng Shanjie, chairman of the National Development and Reform Commission.

However, he stated: “The downward pressures on China’s economy is also increasing” .

Mr. Zheng made these remarks concurrently with his announcement that by the end of this year, China will allocate 200 billion yuan ($28 billion; £21.5 billion) for investment and spending projects.

“The market had higher expectations. “If the data regarding consumption during the Golden Week is weak, the correction will be even more pronounced,” stated Alicia Garcia-Herrero, chief economist at investment bank Natixis for the Asia Pacific area.

“The absence of a true fiscal boost is causing the market to react. If I hadn’t planned a news conference, I wouldn’t have announce anything new.”

The Chinese government has been attempting to restore faith in the second largest economy in the world as worries about it potentially failing to meet its own 5% annual growth target mount.

Investors have been flooding into Chinese stocks since officials began rolling out a package of measures aimed at bolstering the economy.

Plans included financial aid for the impoverished, encouragement for the stock market, assistance for the nation’s property industry, and increased government spending.

However, a few analysts have questioned if the measures will be sufficient to address China’s economic issues.

They claim that in order to put the nation on a more sustainable growth path, significant reforms may be required.
The second-largest economy in the world has been seeing slower growth as it continues to deal with a property market slump, falling prices and other challenges.