Chinese Stocks Dip in Choppy Trade as Investors Debate Next Move

(Bloomberg) — Chinese stocks ended Tuesday’s morning session lower amid a growing debate over how far the rally can go.

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The CSI 300 Index was down 0.5% as of 11:30 a.m. local time, after falling as much as 1.4% earlier. It rose 1.9% on Monday. A gauge of Chinese shares listed in Hong Kong fell more than 1%.

Volatility has gripped the market in recent sessions as investors assess the sustainability of the stimulus-driven rally that began late last month. The size of Beijing’s planned fiscal boost remains unclear, adding uncertainty to equity moves. Caixin reported that China may raise 6 trillion yuan ($846 billion) from ultra-long special government bonds over three years as part of its efforts to boost the sputtering economy.

“There’s a lot of skepticism that the stimulus announced so far just isn’t enough,” said Nathan Thooft, chief investment…

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