China

As China grapples with the fallout from a $7 trillion stock decline, officials are gearing up to brief President Xi Jinping on measures to stabilize the market. This move signifies Beijing’s urgency to restore investor confidence and halt the market’s slide, which has erased a significant value from Hong Kong and China equities since their 2021 peaks. The Shanghai Composite Index, for example, is down over 21% from its high in December 2021. The downturn has been attributed to a variety of factors, including regulatory crackdowns, geopolitical tensions, real estate defaults and internal economic pressures, prompting a call for decisive action to prevent further damage to consumer confidence, especially as the country approached the Lunar New Year holiday. China’s real estate sector ...

Analysts say Beijing needs to roll out measures to stimulate greater domestic consumption amid slowing growth. China last year narrowly beat its economic growth target of 5 percent, one of its lowest benchmarks in decades. Looking ahead, analysts expect the economy to face stiff headwinds in the Year of the Dragon. Against the backdrop of a crisis-stricken property market, subdued export earnings and crackdowns on private industry, international investors are pulling out of Chinese stocks at record rates. With business sentiment faltering, economists broadly agree that Beijing needs to roll out measures to stimulate more domestic consumption. While some analysts are calling for radical measures to jolt China’s economy, expectations are subdued owing to Beijing’s aversion to br...

China's crumbling property sector, its stock market crash, and its gummed-up economy have drawn some comparisons to the 2008 crash in the US. A few weeks ago, the Chinese property giant Evergrande received a liquidation order from a Hong Kong court, forcing the sale of its assets to repay the company's $300 billion worth of debt. This has spurred on the question: is the Evergrande collapse China's "Lehman moment?" The answer, according to one think tank, is no. But it does pose an obstacle to an economic rebound. "Evergrande's bankruptcy is not China's Lehman moment; its downfall is unlikely to immediately trigger a contagion across the entirety of China's financial system," Zongyuan Zoe Liu, a Council of Foreign Relations expert, wrote on Tuesday. Back in 2008, Lehman Brot...