China stocks suffered their worst drops since the pandemic after traders were left disappointed by Beijing’s plans to stimulate the world’s second largest economy.

Shanghai stocks tumbled 5.3pc overnight after racking up big gains a day earlier following a week-long break, while the Shenzhen Composite Index on China’s second exchange sank 6.7pc, or 140.07 points, to 1,958.70.

The benchmark CSI 300 Index tumbled as much as 7.4pc, which was its biggest fall since 2020. 

Stocks on the mainland and Hong Kong rocketed after China last month began announcing measures aimed at boosting its flagging economy, piling on more than 20pc each.

However, a much-anticipated news conference in Beijing on Tuesday - after the Golden Week break - left traders disappointed as officials refused to unveil more stimulus and provided scant detail on the measures already pledged.

Stephen Innes of SPI Asset Management said: “Let’s call it what it is — an abject failure — as Chinese shares opened sharply lower, sending a clear signal that the market is no longer buying half-hearted promises.”

Yeap Jun Rong of IG added: “A lack of new stimulus has been the cause of disappointment, with many market participants hoping that its fiscal policies will follow in the footstep of the financial ‘bazooka’ delivered in late-September, but there was clearly a step-down in yesterday’s announcement.” 

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