China’s three main stock indexes sink to record lows
Analysts say the major factor in the broad decline is a lack of investor confidence and short-term market concerns
The A-share market has not stopped falling, as the three major stock indexes sank to a record low on Thursday, The Paper reported.
As of the July 5 closing, the Shanghai Composite Index hit 2,031.88 points, down 0.91%, which set a record for the lowest closing price in 28 months.
While the Shenzhen Composite Index fell to 8,862.18 points, down 1.92%, hitting a 43-month low. The GEM index fell more than 2% and closed at 1,532.68 points.
More than 3,000 stocks saw slipping share prices.
Wang Xinjie, investment strategy director of Wealth Management Department at Standard Chartered China, believes that the most important factor in the recent market decline is the lack of confidence from investors. Many institutions are pessimistic about the short-term market.
However, the profit margin of Chinese companies continues to lead the way. It is expected to remain at a high level in 2018. Therefore, there is no reason to be pessimistic about corporate profits, Wang said.