Chinese investors are discovering the eternal truth: governments and central banks can’t overcome the force of social mood and control markets. From Tyler Durden at zerohedge.com:
Last week’s dead cat bounce in Chinese stocks – after Beijing did everything but launch a multi-trillion fiscal stimmy bazooka (something it will do, later if not sooner) – is a distant memory, and as Asian markets open for trading in the news week, Chinese markets are cratering with the Shanghai Composite plunging as much as 3.1% to a fresh five-year low..
… while the broader CSI 1,000 Index is also in free-fall and also on pace to re-test the 2018 lows with as many as 990 of the 1000 companies of the index in the red.
Putting the latest collapse in context, China’s market capitalization has sunk by just over $1 trillion in the space of 13 trading days, dragging the total value of the nation’s equities under $8 trillion on Friday, from just above $9 trillion on Jan. 16, as the authorities’ hand-wringing about equity declines simply concentrated investors’ minds on the apparent lack of any solutions for the downturn.
There were several catalysts for the plunge, first and foremost appears to be Trump confirmation that he would impose a tariff on Chinese goods of more than 60% if elected, signaling an increasingly hawkish tone against the top supplier of goods to the US.
Hard to WAR if you are pushing a Weimar Wheelbarrow to the Zimbabwe wallpaper store in the silver linings department.
The Yellow Man is a paper tiger anyway.
What mean mojo orange man bad has with that horndog vulgarian uncouth tweets at 3AM 4-D KGB chess master vibe that scares Karen. (s/)
I only expected Emmanuel Trumpstein to buy us some time for more than two minutes and that he did.
Not my fault if dullards didn’t use it wisely.
This just in from Sleaford Mods:
Johnny Southside.