The severe downturn in Chinese stockmarkets could lead to widespread social unrest and a slowdown in economic growth in Asia, according to Citi analysts based in Hong Kong.
The Daily Telegraph reports the analysts’ warning follows Beijing’s decision to treble stamp duty on share trading on Tuesday night which led to a 6.5% fall in the main index. "A major stock market correction could impact social stability significantly. Of all the likely consequences, this could be the government's top concern, especially as the country is in the middle of a new round of leadership change," says the Citi analyst. Citi also warned a slowdown in China's GDP growth could impact economic expansion in Hong Kong, India, Indonesia, Korea and Taiwan. Man Group, the world’s la...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
