2024-03-21 11:37:47
New Delhi: The condition of China is bad. China’s economy has derailed. Companies are now leaving China and looking elsewhere. At the same time, continuous selling is dominating the Chinese Stock Market. China’s stock market has been in loss for the last three years. This year also there is no respite in the Chinese Stock Market. Due to this long selling, China’s stock market has suffered badly. According to media reports, due to this selling that has been going on for the last several years, the value of China’s stock market has fallen by more than 6 trillion dollars. Those who invested money in China’s stock market have also suffered huge losses. Now China has taken some steps to save its stock market from destruction. China has tightened the scrutiny of IPOs and listed companies. China recently published a set of rules that will tighten scrutiny on stock listings, public companies and underwriters, as regulators step up efforts to regain investor confidence.Earthquake in Adani Group’s shares, broken the most after February 23, Rs 1 lakh crore wiped out
China took these steps
Now regulators will closely examine the IPO. We will take strict action against securities fraud. At the same time, listed companies will be encouraged to increase dividend payments and buy back shares. China now wants to make its capital market secure, transparent and flexible. China will now further strengthen the monitoring of listing of companies. According to the rules, IPO applicants will be strictly scrutinized to prevent excessive fundraising by companies. At the same time, strict punishment will be given for accounting fraud and false statements.
Foreign investors made bumper investment of more than Rs 40 thousand crore, this will have a direct impact on the stock market.
Market in heavy decline
China’s benchmark CSI 300 index is up 4% this year but is still 40% below the peak hit in 2021 due to a slowing domestic economy, a deepening asset crisis, capital outflows and rising political tensions with the West. Where there is a bumper boom in the Indian stock market. At the same time, China’s stock market is dying. China’s blue chip CSI 300 index has fallen more than 11 percent last year, while Hong Kong’s Hang Seng is down 14 percent. According to the report, China’s stock market has fallen by more than 50 percent in the last three years. About 22 crore people have invested in China’s stock market. Due to the decline in the market, the money of these investors is stuck. Its effect is also visible on China’s economy.