Posted on 10/24/2022 9:21:10 PM PDT by BenLurkin
The possibility that policies such as zero-Covid, which has resulted in sweeping lockdowns to contain the virus, and “Common Prosperity” — Xi’s bid to redistribute wealth — could be escalated was causing concern, Cheung said.
“With the Politburo Standing Committee composed of President Xi’s close allies, market participants read the implications as President Xi’s power consolidation and the policy continuation,” he added.
Mitul Kotecha, head of emerging markets strategy at TD Securities, also pointed out that the disappearance of pro-reform officials from the new leadership bodes ill for the future of China’s private sector.
Under the banner of the “Common Prosperity” campaign, Beijing launched a sweeping crackdown on the country’s private enterprise, which shook almost every industry to its core.
On the tightly controlled domestic market in China, the benchmark Shanghai Composite Index dropped 2%. The tech-heavy Shenzhen Component Index lost 2.1%.
The Hang Seng Tech Index, which tracks the 30 largest technology firms listed in Hong Kong, plunged 9.7%.
Shares of Alibaba (BABA) and Tencent (TCEHY) — the crown jewels of China’s technology sector — both plummeted more than 11%, wiping a combined $54 billion off their stock market value.
The sell-off spilled over into the United States as well. Shares of Alibaba and several other leading Chinese stocks trading in New York, such as EV companies Nio (NIO) and Xpeng, Alibaba rivals JD.com (JD) and Pinduoduo (PDD) and search engine Baidu (BIDU), were all down sharply Monday.
(Excerpt) Read more at cnn.com ...
Xi is the God Emperor of China.
Trudeau is the Goddess Empress of Canada
Newsome is the Prince of Daftness of California
And nobody trusts Chinese GDP data.
Why would they have expected anything else? The market reaction is about as daft as our own market reaction to talk of recession that is coming as sure as the sun will come up in the morning or the fed raising rates as they have already announced. None of the response makes any sense.
Anybody seen Hu Jintao?
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