china’s authorities are stepping up efforts to stabilize the stock market after a massive selloff . the collapse in valuations since a peak in 2021 makes them the world’s “best value proposition,” according to at least one market veteran. others remain unconvinced, saying the economy faces some tough challenges that will keep hampering stocks. so, is this a golden moment or a value trap?
few equity markets in the world have fallen as much as china and hong kong. the csi 300 benchmark for shares traded on the mainland declined for the third straight year through 2023 and has lost another 2.6 per cent. a hang seng gauge of chinese stocks trading in hong kong fared worse.
a prolonged property slump , growing deflationary pressures, tensions with the united states and structural problems including a shrinking population are making investors doubt the market’s long-term potential.
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