Investors Sour on China’s Stocks, Renewing Fears About Economy
The wager was supposed to be a no-brainer. China was reopening after nearly three years of pandemic lockdowns, and investors expected that its economy, the world’s second-largest, would come roaring back to life. Chinese stocks soared.
But that bet has soured. This week, Chinese stocks that are traded in Hong Kong sank briefly into a bear market, after losing more than 20 percent of their value from a high in January. Stocks on the mainland are also in the red for the year.
The declines reflect a fizzling optimism in the viability of the post-Covid recovery in China, which has long been a driver of global growth. Despite the continuing geopolitical tensions between China and the United States, the economic and business ties between the two countries remain intricately linked.
“All the signals from China are pointing to a bumpy, faltering economic rebound,” said Tina Teng, an analyst with CMC Markets in Auckland, New Zealand.
Source: The New York Times
