The iShares China Large-Cap ETF (FXI) plummeted 6.22% on Thursday, November 8, 2024, as China-focused exchange-traded funds (ETFs) and stocks of Chinese companies listed in the U.S. faced a sharp sell-off following Beijing's announcement of a debt swap stimulus plan that fell short of investors' expectations.

China unveiled a 10 trillion yuan ($1.4 trillion) package aimed at tackling mounting debt levels at local governments, allowing them to sell bonds to swap out their debt. However, the plan failed to deliver broader fiscal support measures that the market had been anticipating to boost the country's sluggish economic growth amid concerns over slowing demand and lingering trade tensions with the United States.

The debt swap plan disappointed investors who were eagerly awaiting a more substantial fiscal stimulus from Beijing, according to analysts. "This is not the stimulus that markets were looking for at all," said Shehzad Qazi, managing director at the China Beige Book, a U.S.-based research firm. "This is not stimulus to begin with. What they're doing is recycling debt. I don't think this does anything to stimulate growth."