China Stock Market Takes A Beating

A stream of worrying economic data released by China is taking the fizz out of its stock market.

Photo Insert: The CSI 300, which tracks the biggest companies listed in Shanghai and Shenzhen, has dropped about 5%.

An index of Chinese stocks traded in Hong Kong has fallen more than 9% this month and the Hang Seng Index is similarly down, Justin Porter reported for the New York Times.

The CSI 300, which tracks the biggest companies listed in Shanghai and Shenzhen, has dropped about 5%. “The Chinese economy is faced with an imminent downward spiral with the worst yet to come,” analysts at the investment bank Nomura wrote in a report on Tuesday.

The People’s Bank of China (PBOC) has cut key interest rates to new lows, but critics say that the moves have not been bold enough. More distressing data arrived yesterday: Home prices have fallen in 49 of 70 major cities in the country.

Analysts said that the two biggest issues to address were the housing market and domestic spending, which has been hampered by rising unemployment, particularly among young people.

Barclays cut its forecast for economic growth in China this year to 4.5% from 4.9% and said next year would bring even slower growth.

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