Chinese stocks plunge further, facing worst week in yrs

Chinese stocks faced a turbulent week, registering their worst performance in years, despite Beijing’s concerted efforts to instill confidence and address the prolonged decline in the stock market, resulting in a staggering loss of USD 6 trillion over three years, according to CNN reports.

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The Shanghai Composite Index experienced a significant 6.2 percent drop, marking the most substantial weekly loss since October 2018. Simultaneously, the Shenzhen Component Index recorded an 8.1 percent decline, marking its most significant drop in three years. Year-to-date, both indexes have seen losses of over 8 percent and 15 percent, respectively.

The CSI 300 index, comprising 300 major stocks listed in Shanghai and Shenzhen, also suffered a 4.6 percent decline, marking its worst week since October 2022. CNN reported that the index is down 7 percent since the beginning of the year.