Advertisement

Updated January 8th, 2024 at 14:52 IST

China stocks at 5-year lows amid Taiwan, US tensions

The CSI300 Index concluded with a 1.3 per cent decrease, marking its lowest closing level since February 2019.

Business Desk
Chinese stocks
Chinese stocks | Image:Unsplash
Advertisement

China stocks fall: China's blue-chip index reached its lowest point in almost five years on Monday, while Hong Kong stocks experienced a nearly 2 per cent decline amid growing concerns about the mainland economy and escalating geopolitical tensions. 

The negative sentiment was further fuelled by the announcement that China's securities regulator is lifting the net-selling ban imposed last year, allowing mutual fund managers to sell more shares than they buy.

Advertisement

Image Credits: Pexels 

The CSI300 Index concluded with a 1.3 per cent decrease, marking its lowest closing level since February 2019. Simultaneously, the Shanghai Composite Index fell 1.4 per cent, reaching its lowest point since April 2022. In Hong Kong, the benchmark Hang Seng Index faced a 1.9 per cent decline, led by a downturn in tech shares.

Advertisement

Taiwan's defence ministry reported the detection of three additional Chinese balloons flying over the Taiwan Strait on Sunday. The ministry accused China of jeopardising aviation safety and engaging in psychological warfare through these balloons, just days before significant Taiwanese elections.

Adding to the tensions, China's foreign ministry announced on Sunday that it would impose sanctions on five US military manufacturers in response to the latest round of US arms sales to Taiwan.

Advertisement

Speaking at the UBS Greater China Conference on Monday, Eugene Qian, UBS China country head, stressed upon the ongoing geopolitical concerns, stating that "geopolitics remains a major focus." 

He highlighted the potential for deglobalization resulting from tensions between countries, which could lead to an unstable global economy and the division of the world into incompatible economic systems.

Advertisement

Addressing China's economy, Qian noted that "the property market remains fragile," with investor sentiment and activities settling at a lower level. 

In the stock market, Shanghai's tech-focused STAR50 Index experienced a nearly 3 per cent drop to reach fresh record lows. 

Advertisement

Meanwhile, in Hong Kong, the Hang Seng Tech Index slumped 3 per cent to a 13-month low, and an index tracking Chinese developers declined by 2.2 per cent.

(With Reuters Inputs)

Advertisement

Published January 8th, 2024 at 14:52 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Whatsapp logo