By Furthermore, Goldman Sachs reported that hedge funds are actively selling Chinese stocks, while Bloomberg highlighted the missed interest payments on numerous products by Zhongrong International Trust, an important financial group. The concerns surrounding China’s financial system intensified when property developer Country Garden suspended payments on some of its bonds, adding to the growing apprehension.
Despite the unsettling circumstances, Mark Haefele, the Chief Investment Officer at UBS Global Wealth Management, remains optimistic. Haefele expects additional policy support to emerge soon and maintains a positive outlook on Chinese equities. However, he acknowledges the possibility of further disappointments in the near future, potentially prolonging the recovery and calling for a more defensively-minded approach.
On Wednesday, the Shanghai Composite Index concluded with a 0.8% decline, while Hong Kong’s Hang Seng Index experienced a 1.4% drop. Several major Chinese stocks with U.S.-listed American depositary receipts also faced losses. Alibaba (ticker: BABA) recorded a 1% decline in U.S. premarket trading, while JD.com (JD), which is set to report earnings later in the day, saw a 0.4% decrease.
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