January 23, 2024
1 min read

China’s Stock Market Sees Worst Start Since 2016

Hong Kong’s benchmark Hang Seng Index fell 2.3 per cent on Monday, closing at its lowest level since October 2022…reports Asian Lite News

China’s stock market had a rough 2023 and the rout has accelerated in the first few weeks of the New Year, after Beijing dashed hopes that it might do more to support the struggling economy, a media report said.

Hong Kong’s benchmark Hang Seng Index fell 2.3 per cent on Monday, closing at its lowest level since October 2022. The index has lost more than 12 per cent so far this month, nearly as much as it lost in all of 2023, CNN reported.

Mainland China’s Shanghai Composite Index tumbled 2.7 per cent in its biggest daily drop since April 2022. The Shenzhen Component Index, a tech-heavy benchmark, had its worst day in nearly two years, plunging 3.5 per cent. The indexes have tanked 4.8 per cent and 7.7 per cent, respectively, in the first trading days of 2024, the report said.

It’s the worst start to a year for Chinese stocks since 2016, when investors were ditching their holdings following a market crash in 2015. A bubble popped as the economy showed signs of strain and share prices got way ahead of company profits.

In recent months, a real estate crisis, the slowest growth (outside the pandemic) in decades, and a crackdown on some businesses have all combined to undermine investor confidence.

Ken Cheung, chief Asian foreign exchange strategist for Mizuho Bank, said Monday that foreign investors were continuing to “reduce their risk exposure” to China and had “bearish expectations” for business conditions in the country.

ALSO READ: Wayfair to Cut 13% of Global Workforce

Previous Story

Will Modi Look Beyond Tradition in Foreign Policy?

Next Story

Aditya Pande to Lead InterGlobe Enterprises as Group CEO

Latest from -Top News

Kashmir Crisis Deepens

Government of Pakistan Administered Kashmir has instructed residents living along the de-facto border, the Line of Control (LoC) with India to stockpile food and other essential items for at least two months…reports

China to evaluate offer of tariff talks  

Punishing US tariffs that have reached 145% on many Chinese products came into force in April while Beijing has responded with fresh 125% duties on imports from the US   China has

Trump ousts Waltz as NSA 

Waltz has been under scrutiny for weeks after reporting from The Atlantic that he had mistakenly added the magazine’s editor-in-chief to a Signal chat being used to discuss military plans  President Donald

After Terror Strikes, World Stands with India

Expressing that the world stands in solidarity with India in a ceremony organised on Thursday, several German leaders and the Indian diaspora paid homage to the innocent civilians killed in the terror
Go toTop

Don't Miss

UN experts seek info on Tibet’s detained environment defenders

The Special Rapporteurs also emphasized that Chinese authorities should provide

Surge in number of seriously ill Covid patients in China

The health infrastructure in the country is stretched due to