Chinese stock markets in Shanghai, Shenzhen, and Hong Kong have lost about $7 trillion in value since 2021, with indexes recently hitting 5-year lows. The downturn is due to China's slowing economy following its zero-COVID policy, a troubled real estate sector, and weaker global demand for Chinese exports and manufacturing. President Xi Jinping is reportedly considering interventions to support stocks, which rose slightly on the news.
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00:00 It's Benzinga and here's what's on the block. Chinese stock markets in Shanghai, Shenzhen,
00:05 and Hong Kong have lost about $7 trillion in value since 2021, with indexes recently hitting
00:11 five-year lows. The downturn is due to China's slowing economy following its zero-COVID policy,
00:16 a troubled real estate sector, and weaker global demand for Chinese exports and manufacturing.
00:21 President Xi Jinping is reportedly considering interventions to support stocks,
00:25 which rose slightly on the news. While not as severe as the 2008 financial crisis,
00:29 the decline is comparable to the US's early 2000s tech stock bust. Political crackdowns have made
00:35 foreign and individual Chinese investors more wary of the market. The situation raises questions
00:40 about private sector growth compatibility with China's political system long term.
00:44 For all things money, visit Benzinga.com.