Chinese shares showed the worst dynamics in the world in 2023 – Kommersant

For the Shanghai and Hong Kong stock markets, 2023 ends with the world’s largest losses of 10%, Reuters notes. However, this week of the year saw markets perform their best in five months.

The Shanghai Composite index rose by 0.68% to 2,974.93 points by closing today, the Shanghai blue chip index CSI300 by 0.49% to 3,431.11 points. For the first time in its history, the Shanghai blue chip index fell for the third year in a row.

Hong Kong’s Hang Seng Index gained 4.3% over the week and ended today’s session at 17,047.39. The China Enterprises Index remained almost unchanged today and will start 2024 at 5,768.5 points. Hong Kong’s Hang Seng index fell by 14% over the year, while Shanghai’s CSI300 fell by 11%. The subindex of Chinese developers has fallen by 39% this year.

Shanghai hedge fund manager Li Bei said investors with positions in Chinese stocks underperforming the market could see higher returns in 2024 as stock valuations are already likely to have bottomed.

William Witherell of Cumberland Advisors noted that China has disappointed investors expecting a recovery from the COVID-19 pandemic. At the same time, Jefferies analysts are “tactically positive” about the Chinese markets in their forecast for 2024, taking into account economic incentives from the Chinese authorities, the strengthening of the yuan and low stock prices.

Anastasia Larina