China's Stock Market Is Sliding After Brutal Crash This Week

By Trisha Andrada

Feb 02, 2024 09:31 AM EST

This week has been so brutal for China's stock market. The stocks plummeted in the last hours of trading on Friday, sending investors into a state of fear as the Chinese stocks closed at a level not seen in years.

According to CNN, the stock market has lost $6 trillion in value since 2021, and investors continue to flee despite Beijing's efforts to restore investor confidence to end the collapse.

(Photo : China Photos / Getty Images)
Stock index is seen on a display screen at a securities company on March 19, 2007 in Beijing, China.

Unpredictable Close in China's Stock Market

CNN reported that the Shanghai Composite index has experienced its worst weekly loss since October 2018, falling 6.2%, while the Shenzhen Component index slipped by 8.1%, its biggest drop in three years. 

The two indexes have reportedly lost over 8% and 15%, respectively, since the beginning of the year. Similarly, China's blue-chip CSI 300 index, which consists of 300 major stocks traded in Shanghai and Shenzhen, also had its worst week since October 2022, falling 4.6%. So far, the index topples down 7% year-to-date.

READ ALSO: US Expands List of Chinese Tech Companies It Says Are Helping China's Military

China's Stock Market

Several steps have recently been pledged by authorities to restore investor confidence, and it includes further opening up China's $64 trillion financial industry to foreign investors.

Investors showed signs of relief last week, but their concerns about China's economic future remain. Some of the problems plaguing the world's second-largest economy include a steep decline in birthrate, high young unemployment, deflation, and a real estate crisis.

READ MORE: China's Evergrande Facing Liquidation as It Grapples With $300 Billion Debt

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