Chinese Stocks Enter Bear Market as Geopolitical Risks Mount
Live MintChinese shares fell for a fifth straight day, pushing a closely watched benchmark into a bear market, as geopolitical tensions simmer ahead of Donald Trump’s inauguration. “It reflects the numerous uncertainties going on with weakening macro numbers, Trump inauguration, currency pressure due to US dollar strength, and a lull in stimulus until Two-Sessions,” said Xin-Yao Ng, a Singapore-based investment director at abrdn Plc. “I think fast money might stay away in the first quarter and wait for things to be clearer, especially Trump’s tariffs.” A stunning rally in Chinese shares late last year lost steam as investors’ hopes of a more forceful fiscal stimulus didn’t bear fruit. There’s a lack of positive catalysts for the market given a likely lull in major policy announcements until China’s so-called Two Sessions annual legislative meeting in March.