Chaos in the Chinese stock market, 7 trillion dollars lost… Jinping is digging his own grave for the dying economy
The condition of China’s economy is no longer hidden from anyone. No matter how hard Xi Jinping tries, now his secret is being exposed in front of the world. There has been a slowdown in the Chinese economy. Youth do not have employment and companies are going bankrupt due to the ruin of the real estate sector. The real estate crisis has started affecting the banking sector. Foreign companies have started moving out of China. The worst condition is of China’s stock market.
Stock market situation is bad
The condition of China’s stock market is bad. There is panic among investors in China. The Shanghai Composite Index fell 6.2 percent this week. Whereas the Shenzhen Component Index fell by 8.1 percent, which is the biggest fall in 3 years. In the last three years, the market capitalization of China’s stock market has increased by $7 trillion. Despite all the efforts of the Chinese government, the economy is failing, the effect of which is visible on the stock market. There is a race among foreign investors to withdraw their money.
Chinese government policies
The Chinese market regulator changed the rules in the name of preventing market manipulation and wrongful short selling, financial crimes. The market regulator decided to change the rules regarding pledged shares. China’s Xi Jinping government has imposed many restrictions on trading. Market regulators have imposed many restrictions for domestic and foreign investors. Chinese market regulators have set limits on total cross-border return swaps with clients of some brokerage firms. However, experts say that these steps of China will not prove correct at this time. China’s real estate is going through a bad situation. Due to poor economic data of China as well as increasing tension with America, China’s stock market is going through a bad phase. These restrictions will impact emerging markets. Now the situation there is such that the confidence of investors is decreasing.
Foreign investors are attracted towards India
Unlike China, the confidence of foreign investors in India has increased. Foreign investments are increasing rapidly in India. India’s fast growing economy is attracting the attention of investors from all over the world. Indian stock markets keep making records. Investors’ confidence in the Indian stock market has increased. This can be gauged from the fact that in the first week of 2014 itself, Foreign Portfolio Investors (FPIs) invested more than Rs 4000 crore. Total FPI in the year 2023 was Rs 2.5 lakh crore. While foreign investors are withdrawing money from China, the Indian market is attracting them.
