Chinese stocks have been a US$955 billion blunder in 2023 for market forecasters. Bears still have reasons to predict more pain
- Chinese stocks listed in Hong Kong, Shanghai, Shenzhen and New York have lost US$955 billion in market value so far this year
- Unresolved property market crisis, yuan depreciation pressure and geopolitics have battered confidence, forcing foreign funds to jettison Chinese stocks
The slump in Chinese stocks this year has been catastrophic for some of the bullish money managers, given the size of the market and its upside promise. Bears haven’t run out of reasons to predict more pain in the coming months.
About US$955 billion of market capitalisation has evaporated from Chinese stocks listed in Hong Kong, Shanghai, Shenzhen and New York this year, according to Bloomberg data. China analysts at Wall Street investment banks have had to scale back their targets on economic growth, corporate earnings and the yuan.
Alibaba Group, Meituan, JD.com and Ping An Insurance, some of the market heavyweights, have retreated by 10 to 52 per cent in Hong Kong, while the 700-odd members of the MSCI China Index tumbled 9 per cent to rank among the worst global benchmark indices.
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