China's stock market decline: How the negative effects on the market economy and political measures fail.

China's stock market decline: How the negative effects on the market economy and political measures fail.

According to a report by www.faz.net,

In view of the decline in China's stock markets, citizens of the People's Republic are venting their frustration on social media and are also using the US embassy account as a suggestion box. By Sunday, 141,000 comments had been received on Weibo, the Chinese equivalent of Platform Many of the reactions had nothing to do with the topic. So does this repost: “Can’t you spare some rockets to bomb the Shanghai stock exchange?” wrote one user sarcastically. The US Embassy in China's Weibo account "has become a wailing wall for Chinese retail investors," another user said. There was initially no comment from the embassy that posted its post on Friday. While Weibo users can publish individual posts about the market and the economy, the Chinese authorities regularly block what they see as negative online comments if they reach wider circles.

Although the Chinese economy has recovered after the end of the Corona crisis, the simmering real estate crisis is still weighing on it. Furthermore, prices in the country have been falling for months and consumption is not coming out of the slump. This is also reflected on the stock markets: the CSI300 stock index fell by 6.3 percent in January. A series of government support measures have failed to boost confidence, which has been hit by the economic situation. Politicians are trying to calm the situation, but state media reports. In doing so, they send positive messages, which sometimes have the opposite effect.

The ongoing decline in China's stock markets and citizens' expressions of frustration on social media could further weaken the country's economy. Falling prices and stagnant consumption are clear indicators of economic problems that have a direct impact on the market. Investor dissatisfaction and a lack of support from the state could lead to further slumps on the stock markets and permanently undermine investor confidence. In particular, the authorities' unwillingness to accept negative online comments is further deteriorating trust in the Chinese economy and the stock market. It is therefore expected that investment activity and economic growth in China will continue to be under pressure in the coming months.