Chinese oligarchs move a lot of markets around the world. With the coronavirus situation, the big businesses in China are cash flow negative. Governments can print more, but businesses, not so much. Since most big businesses in China are government-owned, that makes things a bit more complicated, but bottom line: when you need cash, you sell the assets most likely not to get trashed in the process. Right now, for China, that’s gold. And gold futures.
In related news, China has ordered businesses to run more electricity, whether the factories are running or not, so outsiders can’t look at electricity/coal usage to determine economic damage. New car sales were down 92% in one week in China, and most recently 83% down. So, car sales in China doubled in just one week. But that’s not strongly good news, especially for companies like $TSLAD.
Wow. That was chock full of things I did not know.
thanks.
communist governments with a dab of capitalism are odd creatures.