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China Ramps Up Threats, Rescue Gossip With Stocks At Tipping Point
The Chinese equity market is in dire straits, but don't worry: The Party's on it.
Of course, it was the Party's wildly mercurial approach to regulation, rectification and disciplinary action (and Xi Jinping's Mao delusions) which put local stocks behind the eight-ball in the first place. But you know what they say: The best person to extricate you from a bad situation is the person who put you in it.
On February 2, Chinese equities capped a rough week with what one mainstream media outlet (the
I’ve long wondered when the “invisible hand” would detect the flaws in the opaque and corrupt chinese economy (despite Charlie Munger’s confidence). China has plenty of dollars it could use but they’re probably spending those on military stuff.
It’s tough to counteract demographics, a centrally inflated real estate bubble, and a dictator micro-managing the economy.
Why not (haha)?
BOJ owns about 7% of Japan’s $6T stock market (as of 2022)!
Quick, spread rumours about a three trillion yuan rescue! Make it four!
CCP’s attempts to order the market higher are becoming increasingly ham-fisted
Per BBG article today:
– Capping swaps used by mainland to short HK
– Prohibit brokers from reducing some long positions
– Prohibit some quant funds from placing sell orders