In China, the stock market is the country’s premier market for equities, with the benchmark Shanghai Composite index climbing to an all-time high of 23,826.7 in September, surpassing the record 22,049.3 set in October 2017.
It is the largest one-day gain in Chinese history and more than quadruples the market’s size in 2015.
But analysts caution that it is hard to gauge the true impact of the new year, since most of the country is still recovering from the devastating quake in late January and early February.
The stock market has also suffered from another slump in China’s economy, which has been reeling since the devastating earthquake in January, when it fell to a near-record low of 5.4 percent in late December.
While the market has recovered in the last year, many Chinese say it is still a long way from recovery and may be forced to adjust its expectations for what the economy can achieve, as China’s government looks to boost growth and ease inflation, which the central bank has been doing.
Some experts say that the latest market selloff is proof that the Chinese economy is not as robust as it once was, and could take years to get back on track.
“The market was not strong in October and December.
Now it is weaker,” said Zhu Shuo, head of China research at investment firm Danske Bank.
“So the market will continue to be weak until it can recover.”
The China economy is still reeling from the disaster and has been in a prolonged slump, and the stock markets have not recovered, said Zhu, adding that it would take time to rebuild confidence.