The recent economic developments in China have sent shockwaves through the financial markets, with Hong Kong shares dropping 3.7%, and mainland China stocks reaching near 5-year lows. China reported its fourth-quarter GDP figures slightly below expectations, revealing a growth rate of 5.2% for the October to December quarter in 2023. This figure fell short of the 5.3% growth forecast by economists in a Reuters poll.
The unsettling economic data is raising concerns among investors, particularly in Hong Kong, where stocks have witnessed a significant 10% decline since the beginning of the year. The cracks in China’s economy are becoming more apparent, with retail sales disappointing in December and the unemployment rate in cities hitting 5.1%. The higher unemployment rate among individuals aged 16 to 24, standing at 14.9%, adds to the overall sense of pessimism in the market. The economic spook has left investors on edge, reflecting the broader challenges facing China’s economic landscape.
Sources:
CNBC: Hong Kong shares drop 3.7% and mainland China stocks tumble to near 5-year lows
Pessimism among investors was most pronounced in Hong Kong, where stocks have plunged by 10 percent so far this year.