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Hungary is threatened by the Chinese stock market crisis
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According to investor.hu, stock market panic does not subside in China, and it is already felt by Western companies. Audi gave up its plan to sell 600 thousand cars in the Far East country. In the company’s engine factory in Hungary, production will not increase this year.
Sources, which know the manufacturer’s plans, but wanted to remain anonymous, told Bloomberg that reduction of target figures is necessary because of the Chinese “market situation”. In the stock market of the country, panic broke out a month ago: suddenly everyone wanted to get rid of their shareholding at the same time, so the exchange rates started to fall. In just three weeks, the main stock index, Shanghai Composite fell 34%, due to the fall, a total of USD 4 thousand billion (which is 40 times of the annual Hungarian GDP) disappeared from the investors’ pocket, the value of the companies in the local market reduced that much.
In China’s stock markets, there are a lot of investors with little money, who lost a part of their savings due to the fall of the share prices, so they are forced to postpone their bigger purchases. This year, for example, they will not buy a car – this is what affects Audi.
The company also has a factory in Gyor.