Comments: Chinese stock traders have almost no comfort in the key week of the market

Source: Bloomberg

Chinese President Xi Jinping has achieved rare victory a week in geopolitical aspects, and has not eliminated continuous pessimism over the world's second largest stock market.

This is a critical period for Chinese investors, especially because Xi Jinping and US President Biden held a long -awaited meeting.Although the two leaders agreed to restore the communication between the two armies, cooperated to combat fentanyl and started a dialogue on artificial intelligence, traders believed that these progress was just a small victory. They hoped that they would see the exports of chips in China in the United States.More progress has been made on more problems such as tariffs.

On Friday, the China Standards CSI 300 Index recorded the worst week for about a month, while the US inflation data triggered the betting that the Fed will not further raise interest rates to boost the rising global stock market.Foreign capital has sold Chinese stocks this week, which has exacerbated the outflow of funds in China's stock market. The market may face unprecedented unprecedented declines for three consecutive years.

Fanwei Zeng, an investment analyst at GAM Investments, said that although the market's popularity has improved slightly, the development of the situation in the past week has not changed the core issues such as the US -China competition in high -end technology and long -term sluggish real estate market.

Alibaba canceled the cloud business spin -off plan on the grounds of restricting the cutting -edge chip of China exported to China, which led to the stock price of the e -commerce giant fell sharply on Friday, highlighting the pressure that the United States and China rushed to the market.

This week, the Chinese technology sector was originally the focus. Investors analyzed the financial reports of companies such as Tencent and Jingdong.Although these companies have announced their positive performance, these stocks have also fallen under the background of the overall market's weakness, and the Hang Seng Technology Index has a cumulative two -day decline in one month on Friday.

The real estate industry is still the core of haze in the Chinese market, and the data released this week is again concerned.Data on Thursday showed that China's housing prices in October hit the biggest decline in eight years in October, indicating that the landslide of the industry is deteriorating, reminding people that the Chinese economy is still sluggish.This also offsets a report that China plans to provide at least 1 trillion yuan of low -cost funds, supporting the "three major projects" to stabilize the optimistic emotions caused by the stable property market, triggering a new round of decline in real estate stocks.

Foreign capital sells 5 billion yuan this week.The CSI 300 Index has fallen by nearly 8%so far this year, and is one of the worst major stock indexes in the world.

BNP Paribas Asset Management's Asia and Greater China Stock Investment Expert MINYUE LIU said that the Chinese government needs to provide "continuous policy support" to restore investors' confidence in the local stock market."We still expect more measures to introduce."