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Interminable Selloff Drives Key Index Of Chinese Stocks Near 20-Year Low
I employ the phrase "interminable malaise" at fairly regular intervals, often in the context of Germany's so-called "slowcession." It (the phrase) also applies to Chinese equities.
"Interminable" is a fun word. Dictionaries will tell you it's usually an embellishment -- hyperbole as garnish. But in the context of Chinese stocks, it's barely an exaggeration. The despondency inherent in both Mainland and Hong Kong shares is unremitting such that rallies, on the rare occasions they occur, feel som
its a vicious cycle, any liquidity government inject into the market will flow into US equities / real estate whereever it can (due to yield differentials), and any additional outflow curb makes onshore equity less attractive to global investors. What used to be dollar based cheap financing being poured into China has now completely reversed.
Australia just ended its Golden visa program, which was largely used by wealthy Chinese, who could purchase real estate in Australia for a minimum of $3.3M US, and receive an Australian passport. Australian immigration will now focus on bringing in educated/skilled workers, who will contribute to economic growth.
Wealth seems to be fleeing China and seeking a home outside of China. The US stock market is one recipient. West coast real estate in the US is another recipient.
https://news.yahoo.com/australia-halts-golden-visa-under-010037327.html
Looking a bit Nikkei-ish? 2007 = 1989?