Shares of GDS Holdings Ltd., a leading data center operator in China, plummeted by 7.16% on Monday, as a broad sell-off in Chinese stocks erased gains from the recent rally fueled by hopes of government stimulus measures.

The sharp decline in GDS Holdings' stock price reflects growing investor skepticism about the potential impact of China's promised economic stimulus program. Despite initially fueling optimism and boosting Chinese equities, the lack of concrete actions and financial details from authorities has raised doubts about the effectiveness of the proposed measures in reviving the country's slowing economy.

Analysts point out that the sell-off in Chinese stocks, including GDS Holdings, was exacerbated by concerns that even if the stimulus measures are implemented, they may not be sufficient to significantly boost consumer spending and economic growth. The Chinese economy has been grappling with weaker GDP growth compared to previous years, indicating that consumers might be tightening their belts out of habit.