FX.co ★ China’s stock market showing green shoots of recovery

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.