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Red Scare
Chinese equities were off on the wrong foot in 2025.
Mainland shares dropped nearly 3% Thursday, a decidedly inauspicious start to the new year. In fact, it was the worst first-day session since 2016, when global markets were still reeling from the PBoC's fraught efforts to orchestrate a weaker yuan.
Recall that the CSI 300 managed to dodge an unprecedented fourth annual loss in 2024, but the benchmark's 15% advance was due entirely to a state-engineered buying frenzy in and around Golden Week
Someday, if the Chinese people manage to get rid of Xi, then they will be able to fully embrace and expand the capitalistic mentality that exists in China, but is currently severely repressed.
The US economy and stock market will immediately suffer due to having legitimate competition.
Mao came to power to begin with as a result of the unfettered capitalism which left 98% of the populaton destitute.
Memories fade, of course, and many may want to try that again. Which is one reason that Xi and company delight in pointing out how ever-expanding income disparities are starting to destabilze the US, EU and nations such as Brazil.