Chinese stocks under pressure as investors lose confidence in the economy
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- čas přidán 6. 02. 2024
- According to Bloomberg estimates, the recent sell-off in Chinese and Hong Kong equities has wiped out almost $5 trillion in value, since the peak in 2021. According to Chinese state media, Wu Qing, a former chairman of the Shanghai Stock Exchange, will replace Yi Huiman as Chairman and Communist Party chief of the China Securities Regulatory Commission.
Anthony Sassine, Senior Investment Strategist at KraneShares, and Eswar Prasad, Senior Professor of Trade Policy at Cornell University, joins Yahoo Finance to discuss the state of China's economy and what the Chinese government will need to do to alleviate their current situation.
Sassine starts off by explaining current issues with the Chinese economy: "The policy has been supportive for the economy, especially from the fiscal side over the past two years. We saw that from infrastructure perspective and also manufacturing. And that helped a lot keeping the growth at 5%. But that hasn't been effective in actually bringing consumers back, right? So consumer sentiment continued to be depressed in China. Especially after two years of Covid and regulations, which show some of the internet companies kind of, being under the microscope, and not hiring as much as they used to. The consumer is still not consuming as they should."
Prasad explains what it will take to pick things up: "Right now, we are seeing deflation becoming entrenched. We see that the stock market is unraveling. The property market is not doing terribly well. Growth is slow, employment is weak. The biggest problem, though, is the lack of private sector confidence. Households are very reluctant to consume. Private businesses are very reluctant to invest. That's going through a combination of things to turn matters around. It's going to require some macroeconomic stimulus, especially fiscal stimulus that more directly supports consumers. It's also going to require some measures to restore confidence in the private sector. "
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Nah. China is too risky to invest right now.
Thats where you can make great returns. US stocks are fully overvalued
It’s actually wiped off almost 7 trillion by now
Bouncing back quickly.
Good
@bin.s.s. lol, no, it's not.
Its a wall street playground. Thats why Huawei is not public listed.
Chickens are coming home to roost. An economy that depends on the whims and moods of one man is at great risk. Where a capitalist system can react and pivot on a dime. Chinese model of buying houses financed on people paying on properties not even started yet. A huge ponzi scheme. Chinese people are wonderful workers, citizens, savers, but CCP model destined for failure. Covid policy brutal. Shut down economy for years, business failed, world wide supply chain forced
much of what you said is right
Is Buffett investing in Weibo and BYD??
So I can get even better deals on Temu right now? Sweet
You will get slightly half of size of product you order 😂
286% debt to GDP ratio is low. Got it. Just like kweb fees are low
One high end items need a lot of smaller items and this is Supply Chain . Sustainable investments not banks or anything about monetary system
That's good. I am buying.
Better get SWFTcoin then....
The new market regulator apparently is heavy handed and discipline centric. Very much an extension of Xi Thought and likely counter to Free Market ideals.
Your so called free market had created tons of financial crisis and the world has to bail US out. Have u see US stocks rising 2000% in a day and dropped back to before it started. This is FREE market for u.
Is Xi's just correcting the markets to gain a much better understanding of their true worth/value to help regain consumer trust amongst the population to encourage new spending, growth, and to discourage corruption naturally through supply, demand, and healthy competition? If he is, then can you please help explain to me how that is, or could be considered a bad thing, and bad for who exactly, America or China? Thanks!
Be Business minded, just take one IPhone , how many supply Chain and box up Price is over a few hundred %
Never again will I buy a Chinese stock
A fool and his money ...
Most people are far too young to remember the extremely fast growth of the Soviet union touching 6% during a period of early development up to an including the years when kruschev slammed his shoe on the table at the UN and said that they would bury the US with their economy economy.
We all saw what happened for the twent years following.
Centrally directed economies, can appear to do very well when the initial structural components are being accumulated by a powerful enabling state, but then comes the rub - how to transition from that state condition to the complexity of an advanced economy as is seen in all western states.
Central direction cannot achieve this, the misallocation of resources is gigantic and collapse almost inevitable.
Even if collapse is not achieved, sclerotic, growth and disorder happens as a result of the incompetence of central committee management of economy.
The Chinese unsmiling emperor is a Marxist and is blind to these realities.
It is plainly obvious that gigantic resources are misallocated both to military for prestige purposes, to real estate for central oppression purposes and immense population management purposes, and to the insane development of dysfunctional and undesirable cities in ridiculous locations. Glitchy
They look glitzy, but they are appealing inhuman places to exist in.
Doing ridiculous things in order to desperately sustain some kind of employment for a population that is so vast and unweildy, in un-natural circumstances, the only way that it could progress would be the liberty of personal action .
China is a failure as the Soviet union was a fail.
It is long overdue that the west saw this rather than in terra and amazement at a central committee of robots, and an unsmiling emperor, who swaggers around glaring at everybody in sight.
China is newspaper tiger their club of people and could do very well but it’s more like a great oak tree. It has grown too fast and eccentrically, and the central core is rotten..
You are a mad person to say this.Your headline is dead wrong.
$EPIKO 👀 1000x 💎
Capitalism vs Communism
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