Growth following the stimulus package was rapid - from 2009 to 2011, real GDP growth in China grew at approximately 9.6%, though in the two years that followed, real GDP growth fell to 7.7%. The Chinese government responded to 2008 recession with a stimulus package that would draw resources from both the public and private sectors in order to fund an unprecedented infrastructure build. Ĭhina's economic growth, however, was stunted by the 2008 global recession and its aftershocks. The Chinese stock market and economy grew quickly, and by 2012, the number of listed companies between the Shanghai and Shenzhen Securities Exchanges had risen to over 2,400, worth a market capitalization of nearly 50% of China’s real GDP, and included over 200 million active stock and mutual fund accounts. As more companies went public, investors rushed to the Shanghai and Shenzhen exchanges. By 2000, the Chinese stock market had over 1,000 listed companies, worth a market capitalization of nearly a third of China’s overall gross domestic product (GDP), and by the end of 1998, investors had opened nearly 40 million investment accounts. 6 Bloomberg debate on China at Davos 2016įollowing a period of closure during the early history of the People's Republic of China, the modern stock market in China reemerged in the early 1990s with the re-opening of the Shanghai Stock Exchange, and founding of the Shenzhen Security Exchange.
The market meltdown set off a global rout in early 2016. In January 2016 the Chinese stock market experienced a steep sell-off and trading was halted on 4 and 7 January 2016 after the market fell 7%, the latter within 30 minutes of open. By the end of 2015 the Shanghai Composite Index was up 12.6 percent. īy the end of December 2015 China's stock market had recovered from the shocks and had outperformed S&P for 2015, though still well below the 12 June highs. Īt the October 2015 International Monetary Fund (IMF) annual meeting of "finance ministers and central bankers from the Washington-based lender’s 188 member-countries" held in Peru, China's slump dominated discussions with participants asking if "China’s economic downturn trigger a new financial crisis". After three stable weeks the Shanghai index fell again on 24 August by 8.48 percent, marking the largest fall since 2007.
Values of Chinese stock markets continued to drop despite efforts by the government to reduce the fall. By 8–9 July 2015, the Shanghai stock market had fallen 30 percent over three weeks as 1,400 companies, or more than half listed, filed for a trading halt in an attempt to prevent further losses. Major aftershocks occurred around 27 July and 24 August's "Black Monday". A third of the value of A-shares on the Shanghai Stock Exchange was lost within one month of the event. The Chinese stock market turbulence began with the popping of the stock market bubble on 12 June 2015 and ended in early February 2016. ( January 2016) ( Learn how and when to remove this template message) Please help by editing the article to make improvements to the overall structure. This article may be in need of reorganization to comply with Wikipedia's layout guidelines.