In trading on May 31, the Hang Seng index fell by 2.96% and hit a low of 18,044.86 points. This marks the start of a bear market, according to Bloomberg, as the indicator is down 20.5% from its peak on January 27, 2023 (22,688.9 points). The May close marked the Hang Seng at 18,234.27 points, representing a decline to 19.63%.
The Hang Seng China Enterprise Index (CEI), which includes the 40 largest companies in mainland China traded on the Hong Kong stock exchange, lost 20.7% from the January high and at the close of trading on May 31 was 6163.34 points.
The fall in the Chinese stock market is due to the rapid outflow of funds from global funds. Investor sentiment was aggravated by geopolitical risks and continued weakness in China's real estate sector. In addition, the data of the index of business activity in the manufacturing sector of the country (PMI) turned out to be lower than analysts' expectations: in May, the indicator was 48.8 points compared to 49.2 points in the previous month and with the forecast of experts at 51.4 points.