Boston, MA 09/23/2014 (wallstreetpr) – Bitauto Hldg Ltd (ADR) (NYSE:BITA) based in China witnessed a sharp dip in its price on Monday over comments of Finance Minister Lou Jiwei, who hinted of more economic stimulus measures in the coming time. Jiwei admitted the Chinese economy continues to remain under pressure, which sparked a bearish view in the Chinese stocks.
No Stimulus
During a meet with G-20 finance ministers and central bank personnels, Jiwei disclosed that the government will not modify its economic policy in a substantial way on the basis of just one economic indicator. The remarks has put off the hopes that the Chinese government will take action to steer growth in the world’s second largest economy.
Data released during earlier this month points out that the Chinese economy is slowing down. The key number such as industrial output showed growth of 6.9% in August year-over-year, which is the weakest rate recorded since 2008. During the previous week, China had announced injection of close to $81 billion into five banks in order to bolster lending. The news followed a sharp decline in Shanghai composite by 1.7% and a drop of 1.4% in Hong Kong’s Hang Seng to a two-month low. Internet stocks, including the giant Alibaba Group Holding Ltd. (NYSE:BABA) dipped by as much as 4.3% on its second day of trading, while Bitauto nosedived by more than 7.50% on the day.
PMI Inches Up, Supports Growth
In the meanwhile, the preliminary HSBC/Markit report released today showed that the Purchasing Managers’ Index inched up to 50.5 in September from 50.2 in August, which came in as per the expectations of the market analysts. Any figure below 50 indicates that the economy is contracting and above implies expansion. The preliminary data should serve as a major relief to markets, which remained under pressure due to weak economic growth concerns.
