Skip to content Shanghai Composite Dips – December 25-2023
In early trading at the week’s start, the Shanghai Composite dropped slightly by 7 points, or 0.25%, settling at 2,908. This marks the second consecutive session of decline, influenced by underperformance in sectors like academic services, real estate, and utilities. The trading atmosphere was subdued, partly due to the closure of several Asian markets for holidays. Currently, the index hovers around its lowest point in over a year. This downtrend is fueled by renewed fears of a tech clampdown in China, spurred by new reports suggesting Beijing’s plans to impose stricter regulations on online gaming expenditures.
Looking ahead, China’s economic outlook for 2024 remains hazy. The country grapples with ongoing challenges, such as a persistent property market slump, soaring debts at the local government level, trade sector weaknesses, and rising geopolitical strains. In the gaming sector, companies saw a continued decline. The CSI Anime Comic index fell more than 4%, following a 10% dive in the previous session. Major gaming firms, including Giant Network Group Co., 37 Interactive Entertainment, and Kingnet Network, experienced a sharp drop of around 10% each, hitting their daily limit.
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