The share index has had its weakest week so far since a party congress.
(Photo: Reuters)
Dusseldorf The situation in politics and on the stock exchange could not be more different: China’s head of state Xi Jinping has cemented his position of power, but the Chinese financial market lacks any stability.
Following the Chinese Communist Party (CP) party congress, the “Hang Seng China Enterprises Index” of Chinese stocks listed in Hong Kong lost around nine percent in value in the past week. According to data from the financial service Bloomberg, it is at its lowest level since 2008, after having lost almost 40 percent since the beginning of the year. According to Bloomberg, this is the worst performance of a stock index this year.
The turbulence on the market could continue, data from the analysis company S3 Partners shows. Because short sellers, professional investors who bet on falling prices, have increased their bets significantly since October, after having temporarily reduced their commitment since May.
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