Chinese stocks continued to fall, wiping out the previous month's gains, while the Chinese yuan fell to a 16-year low amid rising economic growth concerns.The MSCI China Index fell more than 1% to levels seen before the July Politburo meeting, when leaders promised policy intervention to boost the economy, spurring a market boom.Overseas investors sold …
Chinese stocks continued to fall, wiping out the previous month’s gains, while the Chinese yuan fell to a 16-year low amid rising economic growth concerns.
The MSCI China Index fell more than 1% to levels seen before the July Politburo meeting, when leaders promised policy intervention to boost the economy, spurring a market boom.
Overseas investors sold Chinese stocks through Hong Kong-based exchanges, extending the net selling run to the eighth session.
Concerns over the country’s slowing economic development and the country’s property and banking systems have fueled the recent selloff in Chinese markets. Concerns have been expressed about the possibility of deflationary pressures undermining business earnings and reducing prospective returns.
However , China’s central bank increased monetary easing and slashed key policy rates for the second time in three months in a bid to bolster economic recovery. However, policy pronouncements have failed to rekindle investor confidence in the midst of the economic downturn.
Investors’ skepticism in the Chinese market grew as investment banks around the world reduced their economic growth projections for the Asian country for 2023. JPMorgan Chase & Co.’s team may continue reduce its forecast to 4.8%.
Sentiment was further harmed as the most recent data indicated that home values fell again in July. According to Bloomberg, the volatility in China’s property industry has been at the heart of the country’s economic problems due to its relevance to growth and ramifications for household wealth and the financial system.
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