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Shares jumped more than 10% as trading resumed after the Golden Week holiday.
China's stock market rally fizzled as the much-anticipated announcement of a plan to revive the country's ailing economy disappointed investors.
Stocks jumped more than 10% as trading resumed after the Golden Week holiday, but retreated after a news conference by the country's economic planners.
After a volatile day of trading, mainland China's Shanghai Composite Index closed 4.6% higher, while Hong Kong's Hang Seng fell 9.4%.
Investors were hoping for more information on how the government plans to support economic growth, but the announcement gave few details.
The chairman of China's National Development and Reform Commission, Zheng Shanjie, said he was “fully confident” in the country's ability to achieve its economic and social goals for the year as a whole.
But he added: “Downward pressures on the Chinese economy are also increasing.”
Mr Zheng's comments come as he announces that China will issue 200 billion yuan ($28 billion; £21.5 billion) for spending and investment projects by the end of this year.
“The market was really expecting more. The correction will be even stronger if the Golden Week consumption data is weak,” said Alicia Garcia-Herrero, chief economist for the Asia-Pacific region at the bank. Natixis investment fund.
“The market is reacting to the lack of real fiscal stimulus. I would not have organized a press conference to not announce anything new.”
The Chinese government is working to boost confidence in the world's second-largest economy as concerns grow that it could miss its own 5% annual growth target.
Investors have flocked to Chinese stocks since authorities began rolling out a series of measures aimed at boosting the economy.
The plans included aid to the crisis-hit country's real estate sector, support for the stock market, cash distributions to the poor and increased government spending.
But some economists question whether these policies will be enough to solve China's economic problems.
They say deep reforms may be needed to put the country on a path to more sustainable growth.
Growth is slowing in the world's second-largest economy as it continues to face a housing market collapse, falling prices and other challenges.
