China's Stock Market Crisis Deepens Despite Government Interventions

Investors, both domestic and foreign, continue to pull back amid economic concerns and lack of confidence in Beijing's measures to stabilize the market.

China's stock market has seen a significant slump in recent years, with key market indexes plunging and extending a protracted $6 trillion-dollar rout that began in 2021.
Despite a series of interventions and announcements by Chinese officials, economic problems such as a record downturn in real estate, deflation, debt, a falling birthrate, and a shrinking workforce continue to limit longer-term gains.
Beijing's measures to support the economy and financial markets, including considering ordering state-owned enterprises to buy shares and evaluating the performance of heads of state-owned companies based on their stock market value, have been met with skepticism.
Small Chinese investors and foreign institutions are pulling back from China's markets due to concerns about the country's economic prospects, with foreign institutional investors selling a total of $30 billion of shares listed on mainland Chinese exchanges.
Hong Kong's stock market has also suffered, with the Hang Seng Index falling below the level it was at on the day of the handover from British to Chinese rule in 1997, leading to a crisis of confidence among investors.