The Chinese markets appear to be on one path of decline again, as major indices in the country were trading with deep cuts in the last trading session of this week.
Chinese Indices Stumble
On Friday, December 13, Hang Seng, once, one of the biggest marquee index dropped by over 2 per cent, when we look at the other two major index, namely the CSI 300 and SSE Composite, these indices also dropped by over 2 per cent.
The Slowing Dragon
This drop in the trading value of these indices is being attributed to the dwindling fortunes of the Chinese economy, which has been marred by an abject slowdown in its growth. This in turn is a result of the dip in consumption, which in turn is driven by the low wages of common Chinese citizens.
The country under the leadership of Chinese President Xi Jinping has deployed to ways to manufacture its way out of the crisis, but this move has only earned more acrimonious reactions from its trading partners, who have accused it of dumping its cheap products, running local companies out of business.
Hang Seng Index
When we look at the indices themselves, the value of the Hong Kong-based Hang Seng, the value of the index maintained a low trajectory throughout the intraday trade.
The index continued to trade in red, even after the lunch session. At the time of writing, Hang Seng shares dipped by 2.09 per cent or 425.81 points. This took the overall value of the index to 19,971.24.
CSI 300 Index
The CSI 300 index, another major index in China also dropped significantly on Friday. The index which started a touch behind its previous closing, dipped below the milestone 4,000 mark. 3,391.88
The index declined by 2.37 per cent or 95.32 points. This took the overall value of the index to 3,933.18.
SSE Composite Index
When it comes to the SSE Compositei Index, this benchmark also dipped in value. The SSE Composite also dropped in value by 2.01 per cent or 69.62 points.
This decline resulted in the overall reducing the size of the index to 3,391.88 points.
