(Bloomberg) — Chinese stocks declined after a high-profile legislative meeting disappointed investors who had been hoping for large-scale stimulus to boost the economy and end a deflationary cycle.

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The CSI 300 Index was down 0.4% as of 9:40 a.m. local time, while a gauge of Chinese stocks trading in Hong Kong dropped more than 2%. Both gauges trimmed bigger losses seen at the open. The declines followed a 4.7% tumble in the Nasdaq Golden Dragon China Index in the US on Friday.

Investors had pinned their hopes on the Standing Committee meeting of the National People’s Congress to offer fresh catalysts for the stock market, especially after Donald Trump’s presidential victory injected fresh uncertainty over tariffs. Beijing announced a 10 trillion yuan ($1.4 trillion) program to help local governments tackle their hidden debt on Friday but stopped short of providing new stimulus to bolster consumption.

Chinese data released over the weekend underscored the urgency for more pro-growth efforts, with consumer price growth remaining close to zero and factory-gate prices continuing to fall. UBS lowered its 2025 growth forecast for China following Trump’s election, expecting an “around 4%” expansion for 2025, and a “considerably lower” pace in 2026.

“With perceived emphasis on stabilization rather than stimulus, and no measures to facilitate bank recapitalization and/or boost consumption, we think this will come as a disappointment for stock investors, even though the headline debt-swap numbers were ahead of expectations,” Nomura Holdings Inc. strategists led by Chetan Seth wrote in a note.

Overseas companies are also pulling their money out of China as the growth outlook turns gloomier. Foreign direct investment slid almost $13 billion in the first nine months of the year, a sign that some investors are still pessimistic even as Beijing rolls out stimulus measures aimed at stabilizing growth.

The CSI 300 Index, a benchmark for onshore shares, fell 1% on Friday as traders grew jittery before the NPC announcement. The gauge rallied nearly 35% from a September low through Oct. 8, but has largely moved sideways since then.

–With assistance from Winnie Hsu.

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