{"id":48926,"date":"2015-08-25T00:03:00","date_gmt":"2015-08-25T00:03:00","guid":{"rendered":"http:\/\/127.0.0.1:10081\/?p=48926 "},"modified":"2015-08-25T00:03:00","modified_gmt":"2015-08-25T00:03:00","slug":"48926-revision-v1","status":"publish","type":"post","link":"https:\/\/minzhuzhongguo.org\/?p=48926","title":{"rendered":"China\\’s Black Monday Comes Amid Much Deeper Economic Pessimism: Analysts"},"content":{"rendered":"
2015-08-24<\/div>
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China’s stock market took another dive on Monday, with more than eight percent wiped from the value of shares listed in Shanghai, as analysts warned more losses could follow amid a pessimistic overall economic outlook.<\/div><\/div>
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The Shanghai Composite Index ended what was quickly dubbed “Black Monday” 8.5 percent lower at 3,209.91 points, the level it had reached at the beginning of this year.<\/div>
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The sell-off spooked financial markets around the world, triggering a 5.2 percent fall in Hong Kong’s Hang Seng Index.<\/div>
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Analysts said investors were likely reacting to a lack of government intervention over the weekend, following a drop of 11 percent in share prices last week.<\/div>
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Many had expected China’s central bank, the People’s Bank of China (PBOC) to slash reserve ratios, the amount of deposited funds which banks must keep in reserve, thereby boosting liquidity.<\/div>
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But economists said the stock market’s plunges came amid a broader pessimism spanning many areas of the economy.<\/div>
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“The macroeconomic figures are more or less in line with expectations, which has dealt a blow to confidence among investors in shares,” Professor Hu Xingdou, an economist at Beijing’s University of Science and Technology, told RFA on Monday.<\/div>
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“What is going on in the stock market reflects the economy as a whole. The government’s market interventions won’t have much of an effect in the long term by themselves,” Hu said.<\/div>
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Few safe havens<\/div>
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Xu Xiang, a veteran journalist based in Jiangsu, said there aren’t many safe havens for the country’s army of individual investors in today’s Chinese economy.<\/div>
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“Everyone is either breaking even or losing money, and a lot of businesses are laying off staff,” Xu said. “A lot of friends of mine who work in manufacturing are working every other day now.”<\/div>
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Xu said loans are getting harder to find, and the economic slowdown is having a knock-on effect on China’s food and entertainment sectors.<\/div>
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“The bigger restaurants are having a hard time, while the smaller eateries and the street food stalls are doing well, because people want to avoid the bigger restaurants to save money,” he said.<\/div>
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But Ye Qiming, an analyst based in the eastern province of Jiangsu, told RFA he believes the government will step in eventually.<\/div>
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“The government will continue with its plan to save the stock market, but there will be a limit to the effect it can have, regardless of what they do, because the outlook isn’t good for the Chinese economy,” Ye said.<\/div>
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“It will probably go in fits and starts, with the market rising a little, but the overall trend is downward; we could see the index hit the 3000 mark in September,” Ye said.<\/div>
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“There is a lot of politics in the Chinese stock market, as well as a lot of things going on behind the scenes, but as long as economic growth keeps slowing, and the overall real economy continues to weaken, we are unlikely to see a bull market in shares,” he added.<\/div>
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For detail please visit here<\/a><\/div>","protected":false},"excerpt":{"rendered":"

<div>The Shanghai Composite Index ended what was quickly dubbed "Black Monday" 8.5 percent lower at 3,209.91 points, the level it had reached at the beginning of this year.<\/div><div><\/div><\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-48926","post","type-post","status-publish","format-standard","hentry","category-ChinaHumanRights","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"_links":{"self":[{"href":"https:\/\/minzhuzhongguo.org\/index.php?rest_route=\/wp\/v2\/posts\/48926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/minzhuzhongguo.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/minzhuzhongguo.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/minzhuzhongguo.org\/index.php?rest_route=\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/minzhuzhongguo.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48926"}],"version-history":[{"count":0,"href":"https:\/\/minzhuzhongguo.org\/index.php?rest_route=\/wp\/v2\/posts\/48926\/revisions"}],"wp:attachment":[{"href":"https:\/\/minzhuzhongguo.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/minzhuzhongguo.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/minzhuzhongguo.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}