The A-share and Hong Kong stock markets continue to decline.
A-share Market:
The Shanghai Composite Index once plummeted nearly 7%, erasing all gains from yesterday. The ChiNext Index even hit the &#34;limit down&#34; at one point, while the CSI 300 Index futures fell by 8% at one point, with over 5000 A-shares declining.
By midday, the A-share market's decline narrowed slightly, with the Shanghai Composite Index down by 5.3% and the ChiNext Index down by 7.3%.
Hong Kong Stock Market:
All three major indices in Hong Kong once fell by over 3%, with heavyweight stocks falling one after another. Tencent and Alibaba both fell by over 3% at one point, but the decline narrowed by midday.
US Stock Market Overnight:
The Direxion FTSE China Bull 3X ETF (YINN) once fell by 17%, currently down by around 10%;
While the Direxion FTSE China Bear 3X ETF (YANG) surged by 36% last night and continued to rise by nearly 17% in the overnight session, currently up by around 10%.
Institutional Views:
On October 8, 2024, the State Council Information Office held a press conference to introduce the situation regarding the &#34;systematic implementation of a package of incremental policies to solidly promote the improvement of the economic structure and development momentum.&#34;
This meeting deployed a package of policies without large-scale stimulus, indicating an expectation for a round of local investment-led initiatives, similar to the large-scale local infrastructure projects driven by the four trillion yuan stimulus package or PPP in 2016, which may not be the main focus of this fiscal round.
After the rapid rise of Chinese assets, the market was anticipating a new round of policy support. However, this meeting did not meet such expectations. It mainly reported on the previously deployed package of policies and did not introduce new incremental policies

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A-shares ChiNext once hit the "limit down", while the Hang Seng Index in Hong Kong fell by 3.4% at one point. By the midday close, the decline had narrowed. Yesterday, the State Council Information Office held a press conference, with the market expecting a new round of policy support. However, the meeting failed to meet such expectations

- A-shares and Hong Kong stocks experienced significant declines, with the Shanghai Composite Index dropping nearly 7% at one point.  
- By midday, A-shares narrowed their losses, with the Shanghai index down 5.3% and the ChiNext index down 7.3%.  
- The recent press conference indicated that the upcoming policies would not include large-scale stimulus, suggesting a focus on local investment rather than major infrastructure projects.

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Triple short China ETF surged 17% in overnight trading, while the Shanghai Composite Index plummeted nearly 7% at one point