Tuesday, 19 January 2016

China 2015 growth slowest since 1990, analysts see more selling pressure for stocks

A report on Tuesday showed that China's economy grew 6.8 percent in the fourth quarter from the same period of 2014.

That left full-year growth at 6.9 percent, the least since 1990.

Weakening economic growth is making analysts more pessimistic about China's stock market. From Bloomberg:

Analysts from Bocom International Holdings Co. and Wells Fargo Funds Management say the index may drop 14 percent from Friday’s close to 2,500. Zhongtai Securities Co. sees the gauge losing as much as 300 points, or 10 percent, before bottoming out. Phillip Securities and Central China Securities Co. expect more selling pressure even after the Shanghai Composite sank 3.5 percent to 2,900.97 on Friday, falling 21 percent from its December high.

The Shanghai Composite Index did rise 0.4 percent on Monday though.

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