was a bloodbath Monday but not widely covered. not sure if this has anything to do with all the very wealthy putting their exit strategies into play or not but surprised we heard little to nothing of it here Chinese Stock Crash: Top Stocks Shed Nearly $70 Billion In U.S. As Xi’s Third Term Puts Market On Edge (forbes.com) Shares of the largest Chinese companies listed on U.S. exchanges tanked by as much as 25% Monday after Chinese President Xi Jinping secured an unprecedented third term, as losses to the tune of over $1 trillion continue to mount for the firms. The ten biggest New York-listed Chinese companies lost a total of $67.7 billion in market capitalization, with each firm falling by 8% or more, led by the two largest firms—online retailer Alibaba and technology company Pinduoduo—facing 13% and 25% losses, respectively. The decline extended throughout the more than 200 U.S.-listed Chinese firms, with the weighted Nasdaq Golden Dragon China Index falling 14.4% Monday. The nosedive came even as China reported better-than-expected economic growth and the rest of the U.S. market broadly gained, with the Dow Jones Industrial Average and S&P 500 up 1.3% and 1.2%, respectively.
HNWIs planning to leave China and Hong Kong could take $60 billion with them | Fortune Last month, Shanghai-based billionaire Yimeng Huang—the CEO and chairman of gaming company XD—announced in a company memo that he and his family would relocate from China. The note leaked onto the internet and went viral on Chinese social media, sparking netizen discussions on the growing number of prominent businesspeople leaving China. Xi's Strict Covid Zero Policy in China Pushes Wealthy to Leave Country - Bloomberg Like thousands of wealthy people across China, Shanghai restaurateur Harry Hu is planning to do something he once considered unthinkable: move himself and his money out of the country. Scarred by Shanghai’s chaotic lockdown under the Covid-Zero policy that has made China a global outlier, Hu is joining what investment migration consultancy Henley & Partners estimates is a cohort of 10,000 high-net-worth residents seeking to pull $48 billion from China this year — the second-largest predicted wealth and people outflow for a country after Russia. While policy makers haven’t explicitly tightened curbs on relocating, immigration lawyers say moving has become more difficult in recent months as passport processing times have increased and documentation requirements have become more onerous. Shifting large sums of money out of China has also become harder after a pullback by overseas counterparties who had long helped residents sidestep the country’s capital controls via private swap arrangements. That’s setting the stage for a fresh bout of tension between wealthy Chinese and the ruling Communist Party, which was already strained amid President Xi Jinping’s populist campaign for "common prosperity." The government has put a premium on stability ahead of a leadership confab later this year at which Xi is expected to secure an unprecedented third term, but the long-term economic toll on the country of Covid Zero will be determined by the ultimate scope of China’s talent and wealth exodus.
With Xi getting another term and solidifying his base(many with the same zero covid mentality) it doesn’t look like China will be going back to normal anytime soon. Plus there will be retribution from the new rules regarding chip sales to China. They play the sneaky long game while we play a game looking for 10second gotcha sound bites. Next 5-10 years will be interesting. Glad we are looking at building more chips here and not depending on cheap Chinese labor.
and yet, they continue to rattle their sabers and continue to secure their supply of scarce rare earth metals. How does forcing Taiwan to take the knee benefit the Party or the mainland? Why not declare them a provincial independent Chinese economy and collect a 5% tax.
Xi has more or less put an end to Chinese miracle of exponential economic growth. While its growth rate of the past 35 years or so was unsustainable and its economy has been slowing down over the last few years between his Covid lockdowns and more significantly his replacement of competent economists with Marxist loyalists in the Chinese leadership. China's economic threat to the US may very well be over. Xi Tightens His Grip on China at a Difficult Economic Moment Although not directly on point, this trend could have a profound effect in China. A Lonely Protest in Beijing Inspires Young Chinese to Find Their Voice
Xi Jinping just became unassailable. Here's why investors are running scared | CNN Business When Chinese leader Xi Jinping [COLOR=var(--theme-paragraph__link-color)]secured a historic third term in power at the weekend and stacked his top team with loyalists in a clean sweep not seen since the Mao era, investors were quick to pass judgment.[/COLOR] Chinese stocks listed in Hong Kong and New York [COLOR=var(--theme-paragraph__link-color)]crashed on Monday, and the yuan [COLOR=var(--theme-paragraph__link-color)]hit its lowest level[/COLOR] against the US dollar in nearly 15 years a day later. On offshore markets, the Chinese currency traded at its weakest point since data provider Refinitiv began keeping records in 2010[/COLOR] Missing from the new leadership team are senior officials who have backed market reforms and opening up the economy. Those pushed aside included Premier Li Keqiang, Vice Premier Liu He, and central bank governor Yi Gang. Investors fear that Xi’s tightening grip on power will mean the continuation of policies such as the zero-Covid strategy and crackdown on the private sector that have already caused serious damage to the world’s second-biggest economy.
