The Hang Seng China Enterprises Index fell 0.8% on Tuesday 20 percent from its peak in January, which put the indicator in the bearish zone, writes the “Financial Times”. China’s CSI 300 index, which includes shares of major companies listed in Shanghai and Shenzhen, is down more than 10 percent from its peak this year.
The sell-off in Chinese stocks, now in its fourth consecutive month, reflects a growing consensus among investors that the country’s economic recovery has been slowing for about six months after Beijing abandoned its zero-COVID-19 policy, the article said.
Despite a 4.5% increase in GDP, in the first quarter, the problems of the Chinese economy are best reflected in the published data on the economic situation in industry. The PMI reading showed that despite the lifting of pandemic restrictions, the Chinese economy is still struggling. This indicator amounted to 49.2 points, which means a decrease by 2.7 points and a descent to a downturn (the limit is 50 points). This is also the weakest result this year. Bloomberg described it as a “big surprise”.
Manufacturing sector employs about 18 percent of the workforce there. Its weaker activity calls into question the momentum that, according to Beijing’s expectations, the local economy should gain.
2023-05-30 08:36:23
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