Recently the Shanghai Composite index, which reflects the situation on the Shanghai Stock Exchange, lost 244.94 points (7.63%), descending to the level of 2964.97. The Shenzhen Component index, which is the main indicator of business activity on the trading floor in Shenzhen, has collapsed to 772.35 points (7.04%), closing at a value of 10,197.94. The director of the Financial Institute of the People's Bank (the central bank) of China, Yao Yudong, said that the reason for the collapse of the global stock market was the intention of the US Federal Reserve to tighten monetary policy in September. Yao Yudong fears that a rise in interest rates could lead to a drop in US equities, which may be followed by asset sales around the world that could eventually result in a new global financial crisis.
Adil Kaukenov, Advisor at the Research Institute ‘Public Opinion’, believes that the crisis on the Shanghai Stock Exchange will not have a material impact on the investment activity of China in Kazakhstan: "In Kazakhstan, of course, there are big plans now, hopes, namely financial investment, financial investment from China. A new Kazakh-Chinese fund has been created, the Silk Road Fund, which will invest in infrastructure. Due to certain geopolitical realities and the cooling of relations between Russia and the West, it is clear that the Chinese trend in the investment field is of particular importance. So now there is a new fashionable topic on the crisis in the stock market. Here, you see, it is impossible to overestimate the crisis on the stock exchange. Yes, there is a crisis, and of course, it affects domestic Chinese processes. "
According to Kaukenov, "China has proposed the Silk Road project in the line of the EAEU, this is primarily an economically beneficial project for China itself. In general, China conducts its foreign policy in a very pragmatic way: all that the country offers should be beneficial for the country itself first of all. Another thing is that it is mutually beneficial, so it is interesting to participate as well. Accordingly, these investments are not image projects, when you invest money and it is lost. This is money invested to make money on them in return. These Silk Road projects should bring a serious development for a number of economic regions of China. Accordingly, there is China's high interest in these projects and its willingness to invest. "
"The crisis in the stock market is still local. Yes, it is, of course, great, but it can be compared, for example with MMM. MMM was in Russia. So many people were involved, invested, they lost money, there were some negative sentiments, but it did not affect the overall development of the Russian state or its investment activities. Russia continued to grow, despite the crisis and the fall of the pyramid.
A lot of Chinese people have invested in the stock market. And they are now losing money every day. But it was a bubble and there were a lot of risky investments, they knew it, someone did not know he could lose his money. But globally it does not carry any risk. It could carry a risk if there was not such a factor as the government of China. It takes vigorous action, and most likely the crisis will not affect Chinese plans for the Silk Road".
