After recent Chinese stock market crush, a number of anecdotal articles have cast doubt on the credibility and efficacy of Chinese government policies. I carefully examine the consumer expectation indices and entrepreneur expectation indices along with GDP growth in order to investigate the announcement effect mechanism of China. My findings suggest that policy announcements correspond to the significant improvements of the consumer expectation index and entrepreneur expectation index up until the eleventh Plan (2006-2010), transmitted to GDP growth increases with a lag. However, this expectation anchoring seems to be weakened for the most recent announcement.