Chinese Stocks Tumble in Worst Start to a Year Since 2016
Live Mint-- Chinese stocks posted their worst start to a year in nearly a decade as investors braced for economic uncertainties with weaker-than-expected manufacturing data and an anticipated hike in tariffs. “The underlying momentum for China remains quite fragile, and it will take some efforts from the authorities to change the conversation on the country’s medium-term deflationary dangers.” While Chinese stocks rose 15% last year in a rare annual gain, a bulk of the increase came in the weeks following a late September stimulus blitz. The People’s Bank of China injected massive liquidity into the market at the end of 2024 without using high-profile stimulus, as officials preserve policy space before Trump returns to office. “The losses today look very much trading driven, as there was a bit of accumulated gains that would have prompted selling with the breach of technicals,” said Liu Dejun, fund manager at Beijing Kaiyuan Private Fund Management Co. “Many are also talking about avoiding too much stock exposure ahead of Trump’s inauguration, which is close to the Lunar New Year holidays.” --With assistance from Audrey Wan and John Cheng.