Behind the scenes of the huge loss in Chinese stocks

The $6 trillion loss in Chinese stocks is a reminder that confidence in the Chinese economy is at its lowest level in years. China’s $6 trillion stock market crash has exposed a harsh reality for President Xi Jinping’s government: People are hopelessly pessimistic about the outlook for the world’s second-largest economy, and their pessimism is becoming increasingly difficult to ignore. A sharp sell-off in the country’s benchmark CSI 300 index in January extended the decline in the past three years to 40%, deepening the trouble in a market dominated by small investors. A Bloomberg News report said the government was considering a bailout package of about 2 trillion yuan ($280 billion) and that authorities were anxious to stop the collapse, suggesting that authorities were anxious to stop the collapse.