Chinese Stock Market Continues to Fall, CCP’s Efforts Unsuccessful
As the Chinese stock market continues to fall for the third consecutive year, investors are left feeling desperate and sad, despite the Chinese Communist Party’s (CCP) attempts to restore confidence. The CCP’s official media outlet, the People’s Daily, recently claimed that Chinese people are “optimistic,” despite the ongoing stock market decline.
While U.S. stocks have been hitting new highs since the beginning of the year, Chinese A-shares have continued to plummet, falling below 26,000 points last week. This has left Chinese investors in despair, despite the CCP’s efforts to rescue the market.
The CCP has employed various tactics to boost public opinion, with officials promoting rescue measures such as “interest rate cuts” and “requirement reserve ratio cuts.” However, these efforts have not been enough to stop the downward spiral of the stock market.
Furthermore, the CCP has taken action against credit rating agencies that have criticized the stock market. The People’s Bank of China recently fined six credit rating agencies, including S&P, Moody’s, and Fitch, for allegedly failing to conduct credit rating business in accordance with statutory procedures and business rules.
Despite the CCP’s attempts to control the narrative and prevent pessimistic analyses, the stock market continues to decline. Foreign direct investment in China has seen a negative value, while international investment funds have reduced their investments in Chinese assets.
In a surprising turn of events, Chinese stock investors have reached out to the U.S. Embassy in China, asking for assistance in rescuing A-shares and expressing a willingness for the U.S. to intervene. However, with the CCP’s credibility in question and the stock market in turmoil, it remains to be seen how the situation will unfold.
As the CCP continues to grapple with the ongoing stock market decline, it is evident that investors are losing confidence in the ability of the party to restore the market’s stability. The fate of the Chinese stock market remains uncertain, and it is clear that the CCP’s efforts to salvage the situation have been ineffective.
– Editor in charge: Wen Fang