China’s stock-market rout has become a political problem
Live MintChina’s benchmark CSI 300 has lost more than a third of its value since 2020, and is now entering its fourth year of declines. Hong Kong’s Hang Seng Index, which includes the shares of many big Chinese companies, has already fallen 10% this year, making it the worst-performing major stock index in Asia. The cabinet meeting, which analysts said was a direct response to the stock market selloff, was chaired by Chinese Premier Li Qiang—the country’s No. “The abysmal cheapening of equity valuations suggests a deep disconnect between the authorities’ repeated rhetoric about reaching real growth targets and the markets’ disbelief that nominal growth is anything but healthy," said Aninda Mitra, BNY Mellon’s head of Asia macro and investment strategy. One of the concerns for investors is that China’s economic growth was for many years highly dependent on the property sector, which accounted for around a quarter of economic output, according to some estimates.
History of this topic
Why the West is worried Xi’s economic bazooka has misfired
The Telegraph
Chinese stock gauges rally 20%, bolstering market bottom calls
Live MintDiscover Related
)
