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Chinese stock market wraps up stunning, volatile year but uncertainties abound

Chinese stock market wraps up stunning, volatile year but uncertainties abound

This year, the world discovered the Chinese stock market.
Investors in China poured their money into shares like never before, sending the market on a turbulent, stunning, record-breaking ride.
And around the world, people took notice: In February, for the first time ever, a plunge in Chinese stocks triggered a global market sell-off, suggesting the potential sway this heretofore ignored market will have in years to come.
China's market quickly recovered and the Shanghai Composite index went on to soar 97 percent this year, making it the world's best-performing major benchmark index.
But the year ahead isn't going to be as rewarding, analysts say _ and the volatility will likely continue.
"It was a nice rally," UBS economist Jonathan Anderson wrote in a recent report. The market in 2008 "may not be nearly as exciting."
While many Chinese believe that authorities will to try to keep the markets on an even keel ahead of the Beijing Olympics in August, other risks loom.
Beijing is struggling to keep inflation in check and could continue to raise interest rates. Also, the mortgage crisis in the U.S. has raised the risk of a recession that might sap demand for Chinese exports.
Jason Zhou, 37, is among the legions of Chinese stock investors who were chastened by the market's roller-coaster performance this year.
Zhou, who works for a foreign trade company in Shanghai, bought shares in oil and gas giant PetroChina just after it listed shares on the Shanghai Stock Exchange in November at 43 yuan (US$5.90;


Updated : 2021-05-14 08:21 GMT+08:00