Post by arfanho7 on Feb 24, 2024 2:34:51 GMT -5
The fall was as bad as we saw here in after the dot com bubble. The response by the Chinese authorities was extraordinary. They enacted of series of price distorting measures that smacked of desperation. They stopped all IPOs they asked state owned companies to buy back their shares they arrested traders and journalists they banned short selling and channeled pension money into equities effectively nationalizing a piece of the market.
Fortunately the stock market is a rather small part of China’s economy. s than a third of GDP against the percent or more in developed economies. Also few people have their money in the stock market. The real money is in the property market a drop in values of real estate would have more far reaching Egypt WhatsApp Number List consequences. In terms of global spillovers the recovery in most developed markets does not depend on exports to China. Of course if the Chinese deceleration were to lead to a negative shock to global growth that would be bad news for everyone. I don’t believe this to be the base case unless there is a real hard landing.
Which industries and nations will feel this slowdown most acutely and how are they reacting A China represents between and percent of the exports for the G economies the United States Germany and Japan . But for Australia Chile Korea Singapore and Peru for example these numbers are more significant anywhere from to percent. Some of China’s neighbors are tied to its manufacturing processes other countries more far afield supply it with oil gas metals and other primary materials. A slowdown in China could impact some of these emerging markets pretty hard. Capital has quickly flown out of them hitting their currencies and equity markets. Europe is less exposed though some specific sectors such as luxury goods will feel the pinch.
Fortunately the stock market is a rather small part of China’s economy. s than a third of GDP against the percent or more in developed economies. Also few people have their money in the stock market. The real money is in the property market a drop in values of real estate would have more far reaching Egypt WhatsApp Number List consequences. In terms of global spillovers the recovery in most developed markets does not depend on exports to China. Of course if the Chinese deceleration were to lead to a negative shock to global growth that would be bad news for everyone. I don’t believe this to be the base case unless there is a real hard landing.
Which industries and nations will feel this slowdown most acutely and how are they reacting A China represents between and percent of the exports for the G economies the United States Germany and Japan . But for Australia Chile Korea Singapore and Peru for example these numbers are more significant anywhere from to percent. Some of China’s neighbors are tied to its manufacturing processes other countries more far afield supply it with oil gas metals and other primary materials. A slowdown in China could impact some of these emerging markets pretty hard. Capital has quickly flown out of them hitting their currencies and equity markets. Europe is less exposed though some specific sectors such as luxury goods will feel the pinch.