Xi Calls Up ‘The Butcher’ To Cut Off China Stock Rout

"I heard you paint houses." I was only half joking yesterday when I suggested Xi Jinping's first question for regulators in a briefing on the never-ending bear market in Chinese equities would be, "Have you tried threats?" Media reports indicated that the scope and severity of the stock meltdown prompted officials to set up a meeting with the top leadership in Beijing, including the big man himself. Markets were hoping for concrete measures to stanch the bleeding. Instead, they got a new secur

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5 thoughts on “Xi Calls Up ‘The Butcher’ To Cut Off China Stock Rout

  1. It seems that Japan will benefit economically from the exodus of money/ people from China and Taiwan ( as a result of Xi moving to an even more authoritarian position).

    Exert from recent news article on TSMC:

    Taiwanese chipmaker TSMC said on Tuesday it will build a second Japanese plant to begin operation by the end of 2027, bringing total investment in its Japan venture to more than $20 billion with the support of the Tokyo government.

    Taiwan Semiconductor Manufacturing Co announced plans in 2021 to build a $7 billion chip plant in Kumamoto in southern Japan’s Kyushu.

    1. I know. Can you imagine sitting across the table from him as a broker dealer trying to explain yourself. He’s just sitting there. He won’t say anything. He won’t even blink.

      1. Then you go back to your office to craft a bullish strategy piece about -0.8% CPI YOY. “Lower prices raise consumers’ standard of living”, you begin, “while companies become more productive and efficient”, hmm this is going somewhere, “and base effects will lead to strong growth next year”, gathering steam, “while stocks, anticipating accelerating fundamentals, are sure to start rallying now”, you finish, pleased with how nicely it all hangs together. Your director of research calls you to his office and dresses you down for being the stupidest strategist he’s ever known. After being fired, you sell noodles from a small cart under a tree by the river. Your noodles start off inexpensive and get more so. Customers do not appreciate the lift to their standard of living and you become so efficient that your clothes hang more loosely every month as you wait for the base effects. Whether the fundamentals ever accelerate, or not, you don’t know, as you hang quietly from the tree over the cart by the river.

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