Chinese stocks plunge in 2023, defying optimistic forecasts
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Chinese stocks have suffered huge losses in 2023, confounding many bullish forecasts. About $955 billion in market value has been wiped out.
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The narrative was very different a year ago, with many banks calling for big gains in Chinese stocks on optimism about reopening.
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Instead, China's economy has disappointed and the yuan has slid. Stocks in Japan and India have done far better.
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Valuations look cheap but some investors are staying away due to lack of confidence and ongoing structural issues.
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Bears point to currency risks, property woes, demographics, and supply chain shifts as reasons the slump may continue. Turnaround may require more aggressive stimulus.