The price development of Hang Seng in China - a warning example for the stock markets worldwide.

The price development of Hang Seng in China - a warning example for the stock markets worldwide.

According to a report from www.stockstreet.de, the Chinese stock market, shown by Hang Seng, is in a sustained downward trend. This is caused by China's economic problems, especially in the real estate sector, and is causing deflation. The cost of rescuing the economy is weighing on the country and Moody's warns of a downgrade of China's credit rating. Despite some positive signals in foreign trade, stock prices have fallen by almost 30% and the situation is serious.

China's current economic data is mixed, but the data here isn't much better either. The weak development of the Chinese stock market in contrast to other markets such as the DAX and the Euro STOXX 50 shows that either the Chinese stock market is doing too poorly or the stock prices here are doing too well. But another point to consider is the possible impact of monetary policy, particularly if a recession looms in the US.

At the moment the signs seem to be pointing to recovery, but it must be closely monitored to see whether monetary policy will exacerbate the economy's problems. Financial experts are optimistic about the future of the local economy, but possible signs of a future recession in the US could slow the rise in stock prices. It remains to be seen how the situation will develop.

It is important to carefully monitor developments and adjust your investments accordingly. As always, the stock market involves risks and it is advisable to keep yourself informed about current developments in order to make informed decisions.