China’s Stock Market Is in Free Fall 1/18/24

Featured Story

After a challenging couple of years for the Chinese economy, the country’s stock market appears to be in free fall, with officials urging institutional investors not to sell assets in an effort to keep share prices stable as foreigners withdraw.

Chinese equities slumped on Monday as the central bank decided to hold its medium-term policy rate at 2.5 percent instead of cutting it as expected. The country’s CSI 300 plummeted to its lowest level since 2019, shattering the previous record established in October 2023.

Today’s index was up 0.006% from Monday, but it was down 25.64% from a year ago. Global markets, on the other hand, have climbed in the last year, with the S&P 500 expected to gain 24 percent in 2023 to a record high.

While the CSI 300 has progressively declined over the last year, the MSCI World index, which includes large- and mid-cap representation from 23 Developed Markets (DM) countries, has steadily increased since the beginning of the second quarter in 2023.
Advertisement

China’s market officials have attempted to calm the market by imposing restrictions that ban some investors from being net sellers of equities on specific days. This strategy, in which officials provide “window guidance” to aid the country’s stock market recovery, was introduced in October.

Until recently, the authorities’ constraints appeared to be functioning as intended, with the benchmark CSI 300 stock index rising 3% in the last week of 2023, according to the Financial Times.

However, this tiny victory was reversed in the first week of 2024, when authorities were forced to remove limits on several smaller mutual funds and brokers in response to growing customer redemptions, causing the index to decline more than 4% this month.

China’s central bank, the People’s Bank of China (PBOC), has little leeway to improve the country’s economy as the Chinese yuan has weakened in recent months, and the bank is likely to want to minimize further currency depreciation. This year, the yuan has already lost more than 1% of its value against the US dollar.


Treat your skin well. Our soaps are gentle and produce a smooth, creamy lather that is nourishing to your skin. They are handmade in small batches. We use only high-quality natural ingredients. No chemicals, no sodium laurel sulfate, no phthalates, no parabens, no detergents. GraniteRidgeSoapworks

Loading

Don't Miss

3/18/24:Why Do People Invest In Cryptocurrencies?

By StevieRay Hansen

Cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services or traded for a profit. Bitcoin is the most…

Loading

Read More

3/13/24: A New York Times Financial Writer Acknowledges That He Has Been Fabricating Bank Capital Figures for the Past 14 Years

By StevieRay Hansen

By Pam Martens and Russ Martens: Andrew Ross Sorkin Yesterday, in an emailed newsletter to readers of the New York Times, financial writer Andrew Ross Sorkin effectively…

Loading

Read More

3/12/24: Bitcoin Surges Past Silver As World’s 8th Largest Asset After UK Greenlights Crypto-Backed Notes

By StevieRay Hansen

by Tyler Durden Bitcoin soared above $72,000 for the first time in history this morning, far surpassing its historical (inflation-adjusted highs)… Source: Bloomberg “This rally…

Loading

Read More

3/11/24: Jerome Powell Openly Admits That Banks Will Collapse This Year

By StevieRay Hansen

By SRH, Earlier this week, in a Senate Banking Committee, the esteemed Fed Chair Jerome Powell reluctantly acknowledged that the United States is bound to…

Loading

Read More

3/11/24: Bitcoin Halving,Analyzing The Key Event In Bitcoin’s History

By StevieRay Hansen

by Tyler Durden Authored by Brian Nibley via Finance Magnates.com, With spot Bitcoin ETFs having been approved the same year that the halving is set…

Loading

Read More
Posted in

StevieRay Hansen

In his riveting memoir, "A Long Journey Home", StevieRay Hansen will lead you through his incredible journey from homeless kid to multimillionaire oilman willing to give a helping hand to other throwaway kids. Available on Amazon.

Leave a Comment