2024-01-23 17:15:01
Beijing is considering a vast support plan ($278 billion) for its stock markets, while its economy is slowing and foreign capital flight is not weakening. This idea of a stabilization fund had already been mentioned last October. This initiative would draw on the liquidity of public companies held in their offshore accounts in Hong Kong according to the Bloomberg agency. Initial interventions to support the stock market might be carried out as early as this week. Funds and trading firms were waiting for such a gesture following two trying years. It is not certain that this will be enough to avoid a new stock market crisis this year, which would revive the specter of 2015. During this historic debacle, a vast relief plan consisted in particular of massive purchases in more than a thousand Chinese listed companies. It had allowed prices to stabilize.
The wary Shanghai Stock Exchange simply stabilized on Tuesday and will lose 6.5% in 2024. It is now awaiting action. Beijing has managed to limit the decline of its currency, the renminbi, this year to -1.5% once morest the dollar and hopes to do the same with its stock markets.
1706039618
#Stock #market #Beijing #fears #crash #Chinese #stocks
