IT’S A BLOODBATH: Chinese stocks crash after Xi Jinping cements absolute power.

via asiamarkets:

In the first day of trading since Xi Jinping effectively secured ultimate power for life at the CCP 20th National Congress, Chinese stocks have crashed.

The Hang Seng Chinese Enterprise index is down 6.7 percent from Friday’s close, and in trading on Monday hit a low of 5,112 – the lowest level in this history of the Index which was launched in 2005.

The broader Hang Seng Index also feel sharply on Monday, down 6 percent to levels last seen during the 2008-2009 global financial crisis.

“This is a level of panic that appears inconsistent with recent developments. Not even stronger than expected econ numbers could stem the tide. But who can blame them? COVID Zero plus US tensions plus post National Party Congress uncertainties proving too much now,” said Brian Tycangco from Stansberry Research.

Earlier:

● September 5th: China’s Economy is Headed for One of the Largest Meltdowns Ever.

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● July 6th: Business Exit from China Accelerating. “The exit from China makes sense for many businesses and will probably have positive geopolitical consequences as the U.S. becomes less dependent on production in a communist regime. But the fundamental transportation problems the U.S. faces will remain the same, and some might even get worse.”

● November 13, 2019: How to Conduct Business with Chinese Companies That See a Dark Future.

 

h/t Ed

 

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