2022 stock market decline

[1][2] In 2021, many central banks undertook a zero interest rate policy, assuming the rise in inflation to be "temporary" or "transitory".

In 2022, when inflation readings were much higher and stickier than originally expected, central banks rapidly tightened policy and reduced market liquidity.

[21] By November 2022, the Hang Seng was down 36% year-to-date, one of the worst performances among major stock market indices.

The decline was exacerbated when Xi Jinping won a third-time and investors feared that he would prioritize state-owned firms over private companies.

[22] The decline was also due to concerns over the economic effects of China's Zero-COVID strategy and its regulatory crackdown and fines on companies such as Ant Group.

The decline was at its worst in June 2022; an article in The Wall Street Journal published that month was titled "The Crypto Party Is Over".