China’s stock markets fell sharply, snapping a streak of gains by Reuters

SHANGHAI (Reuters) – Shares in mainland China opened sharply lower on Wednesday and were poised to snap a 10-day winning streak after officials failed to inspire confidence in stimulus plans aimed at reviving the economy.

As of 0132 GMT, the benchmark index was down 4.6 percent, while the blue-chip CSI300 index was down more than 5 percent.

The A-share market made up of shares listed in Shanghai, Shenzhen and Beijing had an earlier day’s ride after returning from a week-long holiday, with turnover hitting a record 3.485 trillion yuan (493, 17 billion dollars).

Hong Kong is one of the best performing global markets this year after experiencing its steepest rally in a generation in recent weeks. It was up about 1 percent in early trading.

“The market is widely anticipating a fiscal stimulus announcement this month, something like 2-3 trillion yuan is the range being talked about,” said Alvin Tan, head of Asia FX Strategy at RBC Capital Markets.

“The recent bullish sentiment on Chinese assets is based on the expectation of a major fiscal stimulus package, so sentiment will change quickly if we don’t get a package that at least matches the range above.”

In overseas markets, Singapore-traded {{28930|FTSE Ch rose about 2.3%.

(1 USD = 7.0665 renminbi)