Chinese stock markets in difficulty, amid high interest and investigations into Foxconn
Bad days for Chinese stock markets, both Shanghai and Hong Kong.
The Shanghai Composite fell 1.47% to close at a near one-year low of 2,939, while the Shenzhen Component fell 1.51% to end at a four-year low of 9,426, on Monday, due to rising bond yields and geopolitical uncertainties in the Middle East, which dampened market sentiment globally.
Investors also became cautious following news that the parent company of Foxconn Industrial , a major supplier of Apple's iPhones, was subjected to tax audits and investigations into its use of land and environmental resources. President and founder Terry Guo, among other candidates for president in Taiwan, is also personally at the center of the investigation.
Shares of Foxconn Industrial fell 10% on Monday, followed by other tech stocks such as IEIT Systems (-4.6%), Cambricon Technologies (-20%), ZTE Corp (-3.8%), Jiangsu Hoperun (- 5.2%) and Eoptolink Technology (-8.6%). Heavyweights in the energy, consumer and real estate sectors also collapsed.
We see that the stock market has practically returned to the level of the Covid era. The Hong Kong Stock Exchange is also hitting lows which, from a historical point of view, appear even more serious:
The already very difficult situation linked to the increase in interest rates starting from the USA was not enough to depress the Chinese stock market. It was also necessary to add uncertainties related to the local business environment towards one of the largest companies in the electronics sector. A move that, frankly, no one felt the need for at the moment.
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The article Chinese stock markets in difficulty, amidst high interest and investigations into Foxconn comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/le-borse-cinesi-in-difficolta-fra-interessi-elevati-e-indagini-su-foxconn/ on Mon, 23 Oct 2023 10:00:10 +0000.