Fear of China's stock market enthusiasm turning into collapse - similar to 2015, according to Nomura economists
Last updated on October 4, 2024, at 11:00 JST
The worst-case scenario of a major crash occurring after the stock market frenzy is also considered
Analysts have analyzed that there is a "much higher probability" of events occurring compared to a more optimistic scenario.
Nomura Holdings' economists stated that with the significant rise in China's stock market, the current Chinese economy is much more vulnerable compared to before the COVID-19 pandemic, and investors should be prepared for the possibility of a sharp decline in stock prices.
Nomura Holdings' Chief China Economist, Mr. Lu Ting (based in Hong Kong), in a report for clients on the 3rd, presented the assumption of a major collapse following the market frenzy, similar to 2015, as the most pessimistic scenario. He analyzed that there is a "much higher probability" of this scenario occurring compared to a more optimistic one.
The worst-case scenario of a major crash occurring after the stock market frenzy is also considered
Analysts have analyzed that there is a "much higher probability" of events occurring compared to a more optimistic scenario.
Nomura Holdings' economists stated that with the significant rise in China's stock market, the current Chinese economy is much more vulnerable compared to before the COVID-19 pandemic, and investors should be prepared for the possibility of a sharp decline in stock prices.
Nomura Holdings' Chief China Economist, Mr. Lu Ting (based in Hong Kong), in a report for clients on the 3rd, presented the assumption of a major collapse following the market frenzy, similar to 2015, as the most pessimistic scenario. He analyzed that there is a "much higher probability" of this scenario occurring compared to a more optimistic one.
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