📉 Big Tech earnings drag the Chinese stock market down
Volatility remains constant on the Chinese stock market. After a series of alternating highs and fears triggered by the introduction of new stimulus packages and speculations about Donald Trump returning to the White House, sentiment on the Shanghai Stock Exchange has once again deteriorated.
The primary cause of investor pessimism in China is disappointment with the current stimulus packages, which have failed to address the key issues weighing down the Chinese economy: overwhelmingly weak domestic demand and stagnation in the real estate market, which remains unaffordable for the average Chinese consumer. This disappointment is further exacerbated by the financial results of key Chinese companies like PDD Holdings and Baidu, with the latter recording its largest sales drop in nearly two years. Adding to the gloom is mounting pressure from the United States. Beyond the looming threat of 40% tariffs, Texas Governor Greg Abbott has launched an offensive against Chinese investments, issuing a decree prohibiting state agencies from investing funds in China-linked assets.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
The CHN50cash CFD has been trading flat for nearly two months, with occasional breakouts driven primarily by geopolitical events or fiscal decisions from the Chinese Communist Party. Today, the index has significantly fallen below both exponential moving averages, approaching the last support level around 12,900. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
