All's not well in China, page-7

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China’sEconomy Teeters, Massive Stock Market Losses: Is a Crash Imminent?

Story by Ben Evans • 11h

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China’s EconomyTeeters, Massive Stock Market Losses: Is a Crash Imminent?© Provided byZ-LIVE NEWS AU

China’s stock market collapses, losing nearly a trillion dollars. Globalimpacts feared as investors panic.

According to the Daily Express, China’s economy is on the brink of apotential crash, which could have worldwide consequences. In 2023, Chinesestocks listed on foreign markets lost nearly one trillion U.S. dollars invalue. This trend is partly due to turmoil in the real estate market, asreported by the Daily Express, citing the South China Morning Post.

Concerns After Stock Market Losses

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Major Chinese companies like Alibaba have suffered significant losses,with their stocks dropping between 10 and 52 percent. These figures, the DailyExpress reports, have sparked concern among Beijing’s elite. Market traderstold the South China Morning Post that investors are increasingly wary ofputting money in China, viewing the markets and the economy as unstable.

A major investor told Daily Express that it’s nearly impossible todivest from China this year. JPMorgan data from October indicated thatinvestors had dumped key stocks worth 12 billion U.S. dollars, as financialexperts warned of a possible collapse of the Chinese economy.

Downturn in China Could Trigger Global Recession

Daily Express reports that a major downturn in China’s economy couldtrigger a global recession. Russ Mold from the investment firm AJ Bell toldDaily Express US that shifts in the Chinese economy would cause a “wave ofpassive selling” in stock markets. He explained that China is trying tostimulate the economy through interest rate cuts and easing capitalrequirements for banks, but some economists argue that China might not be ableto grow at the current pace for much longer due to high debts.

China’sEconomy Teeters, Massive Stock Market Losses: Is a Crash Imminent? (msn.com)