World News Defence

For the first time in decades, the world’s second economy is itself in trouble.

Hong Kong’s Hang Seng (HSI) Index slid into a bear market on Friday, having fallen more than 20 per cent from its recent peak in January.

The Chinese yuan, last week, fell to its lowest level in 16 years, prompting the central bank to make its biggest defence of the currency on record by setting a much higher rate to the dollar than the estimated market value.

The issue is that, after a rapid spurt of activity earlier this year following the lifting of COVID lockdowns, growth is stalling. Consumer prices are falling, a real estate crisis is deepening and exports are in a slump. Unemployme

A major homebuilder and a prominent investment company in China have missed payments to their investors in recent weeks, rekindling fears that the ongoing deterioration of the housing market could lead to heightened risks to financial stability.

A lack of resolute measures to stimulate domestic demand and fears of contagion have triggered a new round of growth downgrades, with several major investment banks cutting their forecasts of China’s economic growth to below five per cent, according to CNN.

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In a research note published on Monday, analysts at UBS stated: “We lower our prediction for China’s real GDP growth… External demand has fallen further as the real estate downturn has intensified, and policy support has been less than anticipated.

Prior to this, analysts at Nomura, Morgan Stanley, and Barclays revised their projections.

According to CNN, this indicates that China may considerably miss its stated goal of 5.5% growth, which would be embarrassing for President Xi Jinping and the Chinese government.

bad the government has stopped publishing the data, as per CNN.

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