IceCap's concern about China remains high. Escalating risk in China increases probability of escalating risk across Hong Kong, HSBC, European banks and so on… everything is connected. If FED doesn't pivot…. be careful. pic.twitter.com/cpjmYafdX3
— IceCap (@IceCapGlobal) August 15, 2022
China Youth Unemployment at ALL TIME HIGH: ~20%.
— Hao HONG 洪灝, CFA (@HAOHONG_CFA) August 15, 2022
Some bad economic data from China out earlier. With China's six-month credit impulse turning negative again in July, the activity data may continue to disappoint t.co/nKoDuHe7Zi pic.twitter.com/baoNOJ2I6g
— MacroMarketsDaily (@macro_daily) August 15, 2022
Chinese developers may report a 30% year-on-year decline in first-half earnings due this month, which will likely weigh on sentiment, according to JPMorgan Chase & Co. analysts.
Usually when the PBOC cuts interest rates, Chinese stocks pop. Not this time. Retail investors are belatedly figuring out that things are falling apart faster than the CCP or central bankers can fix with more “easing.” Can you spell “financial contagion,” boys and girls? I knew you could….
China’s central bank unexpectedly cut its key interest rates as it ramps up support for an economy weighed by Covid lockdowns and a deepening property downturn.
The rate cut came just before data showing home prices fell again in July, while industrial output and retail sales were weaker than expected, illustrating the breadth of the slowdown. The problems facing the economy have continued into August, with some homebuyers still refusing to pay mortgages on unfinished homes and Covid cases spiking as outbreaks and lockdowns spread across the country.