Disappointment in the 'Xi Jinping 3rd Term' Regime, Hong Kong Stock Market and Yuan Value Plummet

Worst Trend Ever Following the Chinese Communist Party National Congress

[Image source=Yonhap News]

[Asia Economy Reporter Hyunju Lee] Market concerns are spreading over the launch of the 'Xi Jinping 3rd Term,' filled exclusively with people loyal to Chinese President Xi Jinping. This was manifested on the 24th as the Hong Kong stock market plunged more than 6%, and the Chinese yuan's value fell to its lowest level since 2008.

According to Bloomberg, the Hong Kong Hang Seng Index closed at 15,180.69, down 6.36% from the previous trading day. This is the lowest level since early 2009, right after the global financial crisis.

In particular, the Hong Kong H-Share Index (HSCEI), composed of mainland Chinese companies listed on the Hong Kong stock exchange, plummeted 7.30%. Bloomberg reported that this is the worst decline since the index's launch in 1994 following the National Congress of the Chinese Communist Party.

The onshore Chinese yuan also dropped to 7.2633 yuan per dollar as of 5:35 PM Korea time, marking its lowest point since early 2008. Subsequently, the offshore yuan fell to 7.3098 yuan per dollar, hitting its lowest level since trading began in 2010.

Bloomberg explained that this phenomenon reflects the market's deep disappointment, as the 20th Party Congress, which concluded on the 22nd, effectively signaled a one-man regime under President Xi, indicating no changes to existing policies such as 'Zero COVID.'

Dicky Wong of Kingston Securities in Hong Kong described the Hong Kong stock market as being in a panic selling mood due to fear, stating, "The reshuffling of China's leadership and ongoing US-China tensions continue to dampen investor sentiment and increase uncertainty."

This content was produced with the assistance of AI translation services.