Foreign investors stay on the sidelines
Chinese stocks surge but remain laggards vs peers
Investors await fiscal measures to spur consumer demand

SINGAPORENEW YORK, Sept 26 Reuters As the market euphoria to China39;s biggest stimulus since the pandemic settles, foreign investors are now asking whether the 114 billion toolkit will provide the spark needed to turn around a beatup stock market.

Chinese equities have lagged major markets all year, despite a series of piecemeal measures authorities have rolled out to revive the anemic economy and lift stock prices.

This week39;s measures were sweeping. The package of rate cuts and, importantly for markets, an 800 billion yuan 114 billion facility to fund stock purchases showed Beijing39;s new urgency to cure the world39;s secondbiggest economy of deflation and a distressed property market.

Chinese stocks soared, with the blue chip index CSI300 wiping out its losses for the year and set for strongest weekly performance since 2022. The yuan rose to a 16month high against the U.S. dollar.

On Thursday, China39;s leaders pledged to support the struggling economy through forceful interest rate cuts and adjustments to fiscal and monetary policies, adding more fuel to the rally.

Investors said that reaction showed how depressed sentiment was but the measures didn39;t fix what most overseas investors want to see fixed fiscal measures that directly spur consumer demand.

The package was mostly about getting liquidity into the…