Welcome back to The Breakdown with me, NLW.

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What's going on, guys? It is Thursday, October 10th, and today we are talking about a Chinese stimulus walkback.

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On Tuesday, top economic planners in China dashed hopes of a large and continued stimulus. At a

public briefing, the National Development and Reform Commission largely reiterated plans to boost

investment and support the poorest households. One of the officials said, we are fully

confident in achieving the annual economic and social development targets.

Substantial new policy was limited to announcing the issuance of ultra-long-term government debt

and a general willingness to run fiscal deficits in support of growth targets. Gary Ing, senior

economist at Antixis said, nothing much is new compared to the previous announcements,

and the latest commitment to fiscal stimulus looks weaker than market expectations. The front-loading of fiscal spending will only help stabilize growth

and will not be enough to engineer a sharper rebound. Now, if you've been paying attention

to the breakdown, you will know that global investors have been watching these moves in China very

closely. A large package of stimulus measures had been announced two weeks ago, just prior to

the beginning of a golden week holiday. Among them was a new vehicle to provide $70 billion in central bank

liquidity directly to trading firms. Chinese stocks ripped on that news with the benchmark CSI-300

index surging more than 30%. Tuesday's announcement, or rather the lack of announcement, put a halt

to the rally. The CSI-300 plunged more than 5%

yesterday following the briefing, and Hong Kong stocks had their worst day since 2008, losing 10%.

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