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Chinese Markets Growing With Samurai Stealth

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Some investors worried what the future of the Chinese markets would look like after an abysmal January that saw stocks take a nosedive. These troubling events had investors wondering if Beijing couldn’t handle the economic waves of the larger Chinese markets. Astute economists who are watching with a close eye will find February bringing a change in the wind’s direction. There’s good news brewing, and while the growth is slow, it is a steady and positive climb that experts are confident will usher in a healthier quarter.

Marked Increase in Market

While January wasn’t a pleasant month for investors in the Chinese markets, many are beginning to see reparations for the damage that the first month of this year had caused. In fact, the figures show a strong glimmer of hope for change:

 

  • The Shanghai Composite Index gained 3.5%, with an overall increase of 4.5% in February. The latest rise brought the index to 2860.02
  • Nine new firms went public this past week, a clear indication that health is being restored to the stock market. This is coming after a previous ok was given earlier this year.
  • Major retail investors who were holding off on this market trading are presently re-joining the fold, including the Shanghai and Shenzhen markets.

Against the Market Increase

That’s not to say that there aren’t reasons for concern and caution within the Chinese market. Beijing didn’t handle the tumultuous January well, leaving investors sceptical of its ability to steer the ship through choppy waters. Additionally, constantly changing policies concerning the yuan have created much civil unrest and distrust amongst investors, and many are unsure of whether or not they want to rely on a currency that has so much fluctuation in its weekly value.

The central bank of China is stepping up to help out floundering markets even more than they’ve done in previous years, and loans have jumped to an unprecedented $384.78 billion (2.51 trillion yuan), a clear indication that Beijing is at least attempting to offset the faltering economic situation.