Chinese stocks tumbled more than 2% in Tuesday’s session as the wide range of measures the country has taken to prop up the economy rattled investors worried about the country’s tough Covid-19 policy.
UBS cut its forecast for China’s economic growth this year to 3% from 4.2%, while JPMorgan expects the economy to grow by 3.7% in 2022 instead of the previously expected 4.3%.
Although Beijing has rolled out a 33-point package that includes 140 billion yuan ($21 billion) in additional tax breaks, doubts remain that the stimulus will provide a strong boost to growth amid the epidemic restrictions.
The People’s Bank of China and banking regulators have urged banks to increase lending as the economy has been hit by the spread of COVID-19, which has jeopardized growth this year, while central bank governor Yi Gang and other officials met with 24 major financial institutions to discuss terms loan. .
The Shanghai Composite closed the session down 2.41% to 3070 points, while the CSI 300 fell 2.34% – the biggest daily decline since May 6 – at 3959 points, and the Shenzhen Composite down 3. 62% up to 1922 points.
The Chinese currency fell 0.30% against its US counterpart to 6.66 yuan at exactly 12:38 pm Meccan time.
Source: El Iktisad
