Mainland Chinese shares had a topsy-turvy trading day after returning from a week-long hiatus

However, the euphoria died down after the National Development and Reform Commission (NDRC) – China’s economic planning board – held its planned press conference to discuss Beijing’s stimulus measures. Ahead of the holiday break, China’s central government unveiled stimulus measures aimed at reviving a sluggish economy, and investors hoping for more stimulus at the NDRC event were likely to be left disappointed.

NDRC Chairman Zheng Shanjie said he was “fully confident” that China would achieve its economic and social goals throughout the year. Beijing has set a 5 percent growth target for this year, and in line with that target, the NDRC said China will spend 200 billion yuan ($28.4 billion) on key investment projects this year. year, but stopped short of triggering any major stimulus during the press conference.

“The lack of details likely disappointed markets, with news of expectations of 2 to 10 trillion yuan in new fiscal stimulus ahead of the event,” Macquarie Group said in a note published after the press conference.

Markets fell as trading neared midday, but started to rise again in the afternoon. However, the Hang Seng index, which tracks stocks on the Hong Kong stock exchange, saw a continued sell-off, with the index down nearly 10 percent. Hong Kong’s stock market only closed for the holiday on October 1 and has been rising since Beijing first announced stimulus measures in the last week of September so investors could cash out or reallocate funds to mainland China .

Beyond the Hang Seng, mainland Chinese shares closed higher. The CSI 300 rose 6%, the Shanghai Stock Exchange Composite Index rose 4.6% and Shenzhen rose 9.2%.

Analysts have previously said more fiscal support is needed for housing and social spending and that investor sentiment could turn negative without additional stimulus.

The NDRC reiterated Beijing’s message on the need to stabilize the housing market and also said policymakers would focus on raising household incomes and implement plans to boost domestic consumption, but did not provide specific details.