As Beijing still carries out the controversial zero-Covid policy nationwide, the Chinese stock market is close to the bottom, reflecting its economy.

Top deal maker, Fan Bao, CEO of investment bank private equity firm, China Renaissance, told CNN that investment sentiment is not looking promising.

China’s major stock indexes both fell so far this year. The Shanghai Composite index has dropped nearly 15%, while the Shenzhen Composite index has lost almost 24%.

China just released its official April data, showing a grim economic outlook, reflecting that Covid measures have hit harder than expected.

According to China’s National Bureau of Statistics on Monday, retail and manufacturing sectors witnessed a decline in April, with retail down 11.1%, much below the 6.1% decrease forecast from a Reuters survey.

Industrial production also decreased 2.9% year-on-year, down from a 5% gain in March.

The unemployment rate reached the highest of 6.1% since the initial coronavirus outbreak, when the rate was at 6.2% in January 2020.

International agencies and experts also shared their pessimistic outlook on China’s economy.

On May 3rd, Fitch Ratings revised its forecast for China’s 2022 Gross Domestic Product growth from 4.8% to 4.3%

Earlier this month, industry insiders pointed out that the current state of China’s economy is facing the biggest problem in 30 years. The current state of China’s economy results from a shaking investment market, massive foreign capital outflow, and the complicated investment situation in China.

In an article, Frédéric Lemaître, a Beijing correspondent for the French newspaper Le Monde, said that “China is struggling.”

Singapore’s sovereign fund Temasek has forecast China’s economy is near the bottom, and there is a chance its growth could bounce back later this year.

Temasek’s Chief Investment Officer Rohit Sipahimalani gave his forecast when he spoke to Bloomberg that China is “close to the trough, so a very different stage in the cycle.”

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