Latest Stock Updates from China
After the black Monday’s stock plunge, yesterday Chinese stocks fell another 7.6%, but European and other Asian markets have rebounded quite remarkably and the attention to early indicators draws that also Wall Street is going to bounce back.
In the meanwhile, the People’s Bank of China is preparing to inject another 140 billion yuan in the Chinese interbank market to avoid liquidity drying up: cheap loans to lenders who have suffered from the flow of capital out of the country.
Unexpectedly, also the Hang Seng index of Hong Kong closed down at -1.5%, suffering from the side effects in the Chinese financial market.
Moreover, new data about the Chinese industrial production are spreading around and Samsonite, the luggage maker, has warned that sales growth to Chinese customers will halve this year, in a sign that the economy is weakening.
In the next couple of hours we will be able to see if the US stock market will be able to react positively to the current Chinese economic environment.