Chinese stocks

After years of Covid and economic policy missteps, it will take a “Long March” for China’s economy to regain full swing and for commercial and residential real estate to recover its values.

The benchmark CSI 300 Index slid as much as 7.4%, wiping out its gain of 5.9% amid frenzied trading on Tuesday when mainland markets reopened after the Golden Week holiday.

A barrage of economic, financial and market-support measures reinvigorated investor confidence in Chinese shares and prompted the likes of Goldman Sachs to upgrade the nation’s stocks to overweight.

Chinese shares have skyrocketed since late-September as a barrage of economic, financial and market-support measures reinvigorated investor confidence.

While the S&P 500 has declined 2.8% since last Friday, Malaysia’s and China’s benchmarks have both lost less than half of that.

History shows that clamping down on short-selling rarely provides the market with more than a short-term boost.

The volatile moves underscore how investor confidence has been shattered as risks keep stacking up.

Where do we stand in this debate?

The Malaysian Portfolio far outperformed both the Global Portfolio and MSCI World Net Returns Index.

Goldman Sachs Group Inc. said Chinese stocks may rally another 15%, while the yuan is seen hitting levels last seen in April.