China’s Stock Gloom Needs More Than a Blockbuster Golden Week
- Investors wary of uneven economic recovery, geopolitical risks
- Patience needed for earnings to show impact, says JPMorgan
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Chinese stocks are unlikely to shake off their gloom with an anticipated holiday splurge next week, as longer-term concerns about a patchy economic recovery and geopolitical risks continue to outweigh any short-term relief.
The MSCI China Index fell about 5% this month, registering its worst April since 2004 and making it a prominent laggard among the world’s major gauges. Meanwhile, China’s domestic benchmark CSI 300 Index suffered a three-week losing streak, after a reopening rally gave in to a $446 billion rout that indicated a return of entrenched pessimism.