The March Madness, This Gotta End
The Russia-Ukraine War's impact on Chinese equities
Let’s begin with the global market performance since the Russian invasion of Ukraine (February 24 to March 18):
US (S&P 500) +4.1%
Europe (Euronext 100) +2.2%
Japan (Nikkei 225) +3.3%
India (Sensex) +6.1%
Hong Kong (Hang Seng) -6.5%
China A-share (CSI 300) -5.8%
Actually this is not the worst. At the recent trough (March 15), Hong Kong had a year-to-date drawdown of nearly 36% and China A-share dropped as much as 24%. A large number of Chinese stocks lost over 50% its value in less than a month. “It feels like the Russian missiles did not hit Kiev but went directly for the Chinese stock market”, said a local investor in his Wechat post.
This is outrageous…and ridiculous.
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