Following a challenging period for the Chinese economy, the nation’s stock market is currently experiencing a significant downturn.
Authorities are urging institutional investors not to sell stocks in an effort to stabilize share prices, especially as foreign investors are withdrawing.
On Monday, Chinese equities declined after the central bank chose to maintain its medium-term policy rate at 2.5 percent, contrary to the widespread expectation of an interest rate cut by investors.
The CSI 300, representing the country’s stock market, reached its lowest point since 2019, surpassing the previous record set in October 2023.
Today, the index showed a marginal increase of 0.006 percent compared to Monday but remained 25.64 percent lower than the previous year, Newsweek reported.
In contrast, global markets have experienced a surge, with the S&P 500 rising by 24 percent in 2023, reaching an all-time high.
The FTSE China 50 index, composed of 50 of the nation’s largest and most liquid stocks, witnessed a 1.77 percent decrease between Monday and Tuesday, contributing to its long-term decline over the past six months.
Compared to a year ago, the index has fallen by 29.24 percent.
Written by B.C. Begley
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B.C. Begley 