China’s policymakers disappointed investors this week with a lack of follow-through on recent monetary policy stimulus measures. They get a second chance this weekend.

The recent surge in Chinese stocks paused over the last two days after Beijing failed to roll out another large stimulus package, a surprise to investors hoping to add more fuel to the unprecedented rally.

"The strong showing today is not a big surprise as the Chinese bourses are probably playing catch-up after both the Hang Seng Tech Index in Hong Kong and the Golden Dragon Index in the U.S. surged by over 10% in the first week of October when Chinese markets were closed for the Golden Week holidays.

Before the Golden Week break, China announced the most aggressive stimulus measures since the pandemic and the CSI300 gained 25% over five sessions. Flows on Tuesday were directed at broad index funds and pockets of the market expected to benefit from government largesse.

Chinas recent stimulus measures triggered a significant rally in local stock markets, pushing key indices like the Shanghai Shenzhen CSI 300 and the Shanghai Composite to two-year highs. However, according to MRB Partners,