Referring to Global Research’s estimates, Reuters reported that China’s stock market eventually perked up. In the week spanning from January 22 to 27, the investment inflow ballooned to a whopping $12 billion, the second-largest result in history.
Previously, China’s stock market got stuck in a bear trend, suffering a huge capital fight. Now foreign investors seem to believe in the strength of China’s economy.
The Hang Seng, the benchmark index of the Hong Kong Stock Exchange, jumped by 4.21% in 5 trading sessions of the last week of January. On Friday, January 26, the index closed at 15,952.23. Shanghai Shenzhen CSI 300, the index viewed as a barometer of China’s stock market’s health, rose by 1.95% in the same week. The index closed at 3,333.82.
Investors rushed to buy Chinese blue chip stocks. There is a common practice in financial markets to buy assets at record lows. Chinese stocks are now trading at the lowest levels in the last 5 years.
Analysts at Bloomberg said that the US economy is nowadays more advantageous than China’s economy. The US GDP expanded by 6.3% throughout the whole of 2023 not adjusted for inflation. China’s economy logged a modest 4.6% increase last year. Experts at Bloomberg are certain that the US and China have come to a tipping point in the race for global economic leadership. Analysts and market participants are keeping close tabs on the developments.
