Chinese stock markets have lost $550 billion over the past week, despite “strong economic data” due to a range of domestic and foreign factors, according to Business Insider, which cited details from the Financial Times saying that stock exchanges in Shanghai and Shenzhen had lost about $519 billion in market capitalization, while firms on the Nasdaq Golden Dragon index had lost a combined $31 billion.
China’s economy grew by 4.5% in the first quarter, slightly over what was anticipated, but that “outperformance may cause the government to refrain from approving more stimulus,” it said, while the new real-estate registration system may also discourage homebuyers.
Geopolitical tensions stemming from US export controls on advanced chips, plus raids by Chinese authorities on three foreign companies in China in recent weeks have also undermined sentiment both at home and abroad.
Read the report: The FT.
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