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China’s stock market jitters are hurting the middle class
At stake is investor confidence and the Chinese government’s credibility.
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The recent slump will hurt the Chinese middle class most rather than foreign investors, who have limited access to mainland stocks.
PHOTO: REUTERS
Chen Gang
China posted an above-the-target GDP growth of 5.2 per cent in 2023, a figure revealed by Vice-Premier Li Qiang just weeks ago in a move to boost investor sentiment amid a flagging economy.
Yet its stock market, the world’s second largest, continues to crumble. About US$1 trillion (S$1.3 trillion) of its value was wiped off in just two weeks in January. Some analysts have called Chinese equities “uninvestable”.
