Economics

China Stock Slump Set to Drag on Growth

  • Economists see 0.1 to 0.3 percentage-point drag on growth
  • Some form of support for the stock market is likely: survey

Pedestrians walk past buildings in the Lujiazui district of Shanghai.

Photographer: Qilai Shen/Bloomberg
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China’s tumbling stock market is set to join a trade slump and sluggish factory conditions as a brake on economic growth this quarter.

A plunge that has seen the Shanghai Composite Index fall 18 percent this year will reduce first-quarter gross domestic product growth by 0.1 percentage point to 0.3 percentage point, according to the majority of economists surveyed by Bloomberg News this month.