TFIGlobal
TFIGlobal
TFIPOST English
TFIPOST हिन्दी
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
No Result
View All Result
TFIGlobal
TFIGlobal
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

Investors are pulling out of China, as it gets sick again

Akshay Narang by Akshay Narang
March 22, 2022
in China, Geopolitics
CHINA, STOCK MARKET, ECONOMY
Share on FacebookShare on X

China is getting sick again. Millions of people in China’s financial centers like Shanghai and Hong Kong are experiencing lockdown once again.

Meanwhile, the investors are now getting spooked. They are quite aware of how the latest COVID wave in China could eat up their money all over again. So, they are packing up whatever they had invested in the Chinese stock market and are running away in find of solace.

Also Read

Poland blocks Belarus border, stalling China’s Belt & Road trade to Europe. Will Warsaw succeed in forcing China to use its influence on Russia to prevent Russian Drone Incursion? 

How China “Shot Down” the F-35 with Rare-Earth Missile?

China moves into Venezuela directly challenges Trump and US, Xi Jinping’s $1 Billion Oil Gambit for Maduro

China’s stock markets in long-term trouble

In all fairness, the Chinese stock market crisis didn’t start in 2022. It started last year, with the real estate crisis and energy shortages in China triggering an economic collapse. 

Many stock investors are of the opinion that a market-illiterate madman is at the helm of affairs in China. Add to it, Xi Jinping’s relentless crackdowns on the private sector. So, they pulled their money out of the Chinese stock market. 

Read more: Xi Jinping is a market illiterate person who is meddling in China’s stock market and he will cripple the country forever

However, there was also another set of investors, which insisted that China will bounce back. These investors were bullish on China and were still in awe of several decades of stunning economic growth in the Communist country.

And then, the energy sector has only worsened with the outbreak of the Russia-Ukraine war. So, investors in China were divided into a broad binary- bulls, and bears.

Investors got their money trapped in the Chinese stock market

Those who were anticipating a recovery in Chinese economic growth ended up getting their money trapped in China. Out of an unreasonably positive outlook of China, they anticipated that the Chinese government will inject money into the real estate sector and revive embattled property giants. They also thought that the energy crisis would be short-lived and China will ultimately get over it.

What these investors overlooked was the fact that the Chinese government is itself in troubled waters. China had been hiding its provincial government debt, which was estimated to have risen to half of the Chinese GDP by September 2021 end itself.

The real estate crisis, on the other hand, remains unlikely. China has already over-stretched its construction sector. Much of the Chinese infrastructure is lying unutilized and consumer demand is simply not picking up. Even if the real estate companies were to be somehow rescued, it won’t help in reviving the Chinese property sector in shoring up economic growth.

Therefore, bullish investors got their money trapped in a Chinese economy that was never going to rise again. The latest COVID-19 wave would however be the last straw.

Foreign investors flee as China gets sick again

As COVID-19 cases started to pick up in China in a rather unprecedented way this year, investors decided that they have had enough.

Read more: No one is buying Chinese stocks even at a 75% discount

Bears turned into bulls, and Financial Times reported that foreign investors are selling Chinese stocks at a record pace. They have sold 6 billion dollars worth of Chinese stocks in the first three months of this year.

Pruksa Iamthongthong, senior investment head of Asian equities at Abrdn, said, “China stocks have been in a perfect storm for the past two weeks, and global investor confidence in Chinese stocks is so low that the volatility will continue.”

As per SCMP, JPMorgan Chase downgraded 28 Chinese tech stocks to neutral following double-digit losses on consecutive days. The investors have been advised to stay away for the next 6 to 12 months.

China offers a lot of uncertainty with no political or economic stability in sight. The investors have made up their minds. They understand that investing in China is a risky prospect and hence they are pulling out whatever they had invested in China.

Tags: Chinachina economyChinese InvestmentsDebt TrapsStock MarketXi Jinping
ShareTweetSend
Akshay Narang

Akshay Narang

Patriot, Political Analyst, International Relations expert

Also Read

Zelensky: NATO should get our money ready, Ukraine expects $3.5 billion NATO fund for US weapons to sustain war effort

Zelensky: NATO should get our money ready, Ukraine expects $3.5 billion NATO fund for US weapons to sustain war effort

September 18, 2025
Saudi Arabia and Pakistan's new Mutual Defense Treaty marks a historic shift, right after Israel attacks Qatar, challenging U.S. dominance as the Gulf’s security guarantor. Is it Slap on Washington’s Face? 

Saudi got NUKE Access? Saudi Arabia and Pakistan’s new Mutual Defense Treaty marks a historic shift, right after Israel attacks Qatar, challenging U.S. dominance as the Gulf’s security guarantor.

September 18, 2025
Starlink’s new Rival: Russia all set to match Elon Musk’s Starlink satellite network with the powerful ‘Rassvet’

Starlink’s new Rival: Russia all set to match Elon Musk’s Starlink satellite network with the powerful ‘Rassvet’

September 18, 2025
Hanged Over a Letter to Zelenskyy"? Iran Executes Man Accused of Espionage for Israel. Unravel the mystery behind it 

Hanged Over a Letter to Zelenskyy? Iran Executes Man Accused of Espionage for Israel. Unravel the mystery behind it 

September 17, 2025
Modi vs NATO? India’s Role in Zapad-2025 Sparks Western Outrage but Reality Tells a Different Story

Modi vs NATO? India’s Role in Zapad-2025 Sparks Western Outrage but Reality Tells a Different Story

September 17, 2025
India and Airbus solidify billion dollar partnership as orders for 100s of new aircrafts help the the Airline maufacturer zoom ahead of its rivals

India and Airbus solidify billion dollar partnership as orders for 100s of new aircrafts help the the Airline maufacturer zoom ahead of its rivals

September 17, 2025
Youtube Twitter Facebook
TFIGlobalTFIGlobal
Right Arm. Round the World. FAST.
  • About Us
  • Contact Us
  • TFIPOST – English
  • TFIPOST हिन्दी
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy

©2025 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIPOST English
TFIPOST हिन्दी

©2025 - TFI MEDIA PRIVATE LIMITED

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.