The Chinese stock market has fallen to its lowest level since 2019, before the pandemic. The market decline was affected by the slow growth of the Chinese economy, problems in the real estate sector and the US Federal Reserve’s rate hike, which affects technology stocks around the world.
The Chinese stock market has fallen to its lowest level in four years. The CSI 300 index, which tracks the performance of the 300 largest Chinese companies, fell 1.04% to 3,474 points at the close of trading on Monday, trading data showed. Since the beginning of 2023, the CSI 300 has fallen almost 15% in dollar terms.
At the same time, the STAR 50 index fell to its lowest levels since its inception, Bloomberg reported. The STAR 50 tracks the performance of Chinese technology companies and was founded in 2019 as an analogue of the American Nasdaq. During Monday’s trading, the index fell 2.9% to 836 points.
The Chinese stock market falls amid investor concern about the slow growth of the Chinese economy, writes the Financial Times. The decline in economic growth was affected by the bankruptcies of Chinese developers, leading to a significant drop in interest in the Chinese stock market.
The Chinese stock market is also affected by the monetary policy of the US Federal Reserve. The exchange rate in the United States has risen several times, monetary policy has tightened, causing shares of technology companies to fall around the world, notes FT.
Author:
Kirill Bilyk
Source: RB
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