China’s stocks head for weekly loss as caution prevails before finance minister’s briefing #NewsUnitedStates

The CSI 300 Index slid 1.9 per cent to 3,922.80 at the break, taking the five-day loss to 2.4 per cent. If the decline sustains, it will be the first in four weeks. The Shanghai Composite Index retreated 1.6 per cent and a similar gauge tracking stocks in Shenzhen slumped 2.5 per cent, with smaller companies leading the sell-off.

Hong Kong’s market is shut for a public holiday and will reopen on Monday.

Investors are looking forward to the press conference on Saturday morning by Finance Minister Lan Foan. They expect Lan to unveil a fiscal package that could include government bond sales and subsidies to boost consumption, which is crucial to sustain the US$3 trillion stock bull run over the past three weeks. Failure to meet market expectations could hobble the rally.

“If the much-anticipated fiscal reveal turns out to be more talk than action, investors could be in for a brutal Monday wake-up call,” said Stephen Innes, managing director at SPI Asset Management in Bangkok.

“Without real cash hitting the table, this rebound risks becoming yet another false dawn in a long string of market letdowns. Investors want fireworks, not just a spark and anything less could send them running for the exits.”