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China’s middle class is currently experiencing a wave of optimism, but can this last?

Posted on by Vaseline
China’s middle class is currently experiencing a wave of optimism, but can this last?

The 41-year-old had lost about 80 percent of the 2 million yuan ($283,000) she had invested over 10 years.

This week, she was among hundreds of millions of Chinese who returned to the market in a wave of optimism after the government’s announcement New measures to revive the economy.

“I think top management is serious this time,” said Gu, a housewife in Shanghai whose husband is a business executive. “As a veteran of the stock market, I am cautiously optimistic. I am sure we will have a bull market, but it is uncertain how long it will last.”

Mainland Chinese stock markets saw it record highs in trading volume on Tuesday when they reopened after the weeklong national holiday. This was prompted by a slew of economic stimulus measures that have boosted middle-class investor confidence, at least in the short term. But many remain cautious about the country’s long-term economic prospects.

Why are the Chinese markets so volatile?

The mainland stock market has been one of the world’s worst performers since 2021, hit by a shaky economic recovery from the pandemic and as Beijing focused on other issues such as national security and technology amid tensions with Washington and its allies .

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