[New Tang Dynasty Express]Li Qiang reported that the Hang Seng Index fell in new bottles of old wine | Two sessions | Hong Kong stocks

113

Stock Market Plummets as Chinese Government Announces Economic Goals at Two Sessions

The Hang Seng Index took a major hit as the Chinese government announced its economic goals for the year at the “Two Sessions” of the Chinese People’s Political Consultative Conference and the National People’s Congress. The index fell by nearly 400 points, or over 2%, in the morning trading session, continuing to decline throughout the day.

During the government work report, Li Qiang, the National Committee of the Chinese People’s Political Consultative Conference, stated that China’s expected economic growth target for the year is around 5%, with an inflation rate of 3% and the creation of 12 million new urban jobs. However, these figures have been met with skepticism from the outside world.

The government is looking to implement additional stimulus measures to support consumer spending, including promoting consumer “trade-in” programs. However, some experts believe that these measures only treat the symptoms of the economic issues and do not address the root cause.

The Wall Street Journal has even suggested that the era of China’s economic prosperity may be coming to an end, with an aging population, heavy municipal debt, and a fragmented real estate financing model posing significant challenges. The rigidity of the Communist Party’s policy regime is also seen as a major structural problem for the country’s economy.

As the stock market continues to be volatile in response to the government’s economic plans, experts are predicting a difficult road ahead for the Chinese economy. Stay tuned for more updates on this developing story.