Understanding China’s financial market chaos – The Property Chronicle
Select your region of interest:

Real estate, alternative real assets and other diversions

Understanding China’s financial market chaos

Golden Oldie

Originally published August 2021.

Virtually the entire Chinese economy, especially sectors with heavy investment inflows, such as technology, social media and private education, is in a state of flux. Foreign investors are pulling their positions, Chinese CEOs are under strict scrutiny and stocks are in a free fall as Chinese regulators continue to unleash a regulatory tide fuelled by both politics and a genuine desire to alter the economy. CNBCreported on July 25, 2021, that: “The Hang Seng index in Hong Kong fell 4.13% to close at 26,192.32, leading losses in the region.

Hong Kong-listed shares of Chinese tech giant Tencent slipped 7.72% on Monday while Alibaba also dropped 6.38% and Meituan fell 13.76%. The Hang Seng Tech index plunged 6.57% on the day to 6,790.96.”

The turmoil is likely to continue as hysteria over the stock selloff mounts amid real concerns regarding further regulation alongside speculative rumours

At the time of this writing (30 July 2021), Chinese stocks continue to fall with Alibaba, China’s equivalent to Amazon, down 4.35% over the past five days. The turmoil is likely to continue as hysteria over the stock selloff mounts amid real concerns regarding further regulation alongside speculative rumours. Yahoo Finance notes: “A deepening selloff in Chinese stocks spread to the bond and currency markets on Tuesday as unverified rumours swirled that US funds are offloading China and Hong Kong assets.”

The rumours were inspired by speculation of a potential US investment restriction on China and Hong Kong, alongside broader selloffs from investors across Asia who are weary of the CCP’s regulatory onslaught. Based on the ferocity of new regulation, which has recently targeted private education alongside previous victims, such as big tech, the trend seems to be exacerbating, not relenting. 






Golden Oldie The Analyst

About Ethan Yang

Ethan Yang

Ethan Yang is a graduate of Trinity College. He received a BA in Political Science alongside a minor in Legal Studies and Formal Organisations. He currently serves as local coordinator at Students for Liberty and the director of the Mark Twain Center for the Study of Human Freedom at Trinity College. Prior to joining AIER, he interned at organisations such as the American Legislative Exchange Council, the Connecticut State Senate and the Cause of Action Institute. Ethan is currently based in Washington D.C.

Articles by Ethan Yang

Subscribe to our magazine now!

SUBSCRIBE