Xi Watches 6% Stock Rally Evaporate In Six Hours
Now it's embarrassing.
Chinese officials watched a near 6% surge in Mainland equities evaporate on Monday, in yet another testament to just how skeptical market participants really are about Beijing's capacity to engineer a durable rally and turn things around for the struggling economy.
Over the weekend, authorities slashed a key levy on stock trades and unveiled new restrictions on selling applicable to "major" shareholders for companies trading below their IPO level or book value. Those rul
To some degree, all in with Putin shifted the dynamics of Chinese trade relations and taxed their economies.
Both leaders have a worldview that is actually very racist. If either empire ever pissed on a piece of dirt somewhere and left a genetic footprint it is theirs always.
Political paternalism will not feed the world.
Both of these former empires have had their own mass starvations due to these very same policies.
No sympathy here for Xi. He makes his own bed. But he is in charge, and prefers to destroy better possibilities for his people and country by expanding his levels of control. It’s a very sad time for China. One now has to wonder what consequences will he provoke, either within his country or beyond China’s borders?
I saw a Bloomberg article opining that Xi is running China’s economy “cold on purpose” and that investors are underestimating his determination to avoid large-scale debt-fueled stimulus. At the same time, I see no sign of similar determination to shift wealth/control from government and SoEs to Chinese consumer/entrepreneurs. This would, I think, raise the risk of an extended period of weak Chinese growth. I’m also reading that in nominal terms, US GDP is currently outgrowing China GDP. Not promising for Chinese equities.
The CCP literally views the US and westerners in general as enemies. What Xi has done to that country is unbelievably sad. What they do to their population and neighbours in South China Sea is frankly inexcusable. Convincing the WHO to announce in January 2020 that there’s no evidence of human-human transmission of CoVID was inexcusable. What they did to Hong Kong was inexcusable. When are we going to wake up and realize the CCP will take advantage of whomever who do not understand this. These diplomatic overtures allow China to save face and continues to give power to the CCP. I really hope they are just doing this as a ploy to give foreign companies time to get out of China in an semi-orderly fashion.
Actually, not just Westerners, but other Asians too.