{"id":23765,"date":"2017-04-25T18:49:43","date_gmt":"2017-04-25T23:49:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=23765"},"modified":"2017-04-25T18:49:43","modified_gmt":"2017-04-25T23:49:43","slug":"chinese-stocks-give-up-trump-gains-as-1-7-trillion-source-of-funds-unwinds","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=23765","title":{"rendered":"Chinese Stocks Give Up Trump Gains As $1.7 Trillion Source Of Funds Unwinds"},"content":{"rendered":"

Chinese Stocks Give Up Trump Gains As $1.7 Trillion Source Of Funds Unwinds<\/a><\/h3>\n
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The Chinese and U.S. stock markets are going in opposite directions, as an intensifying crackdown against leverage has slammed the recently ‘stable’ Shanghai Composite <\/strong>over the past week, erasing all post-Trump gains.<\/p>\n

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The relatsionship between the two markets is the weakest since August 2008<\/strong> – just before the collapse of Lehman unleashed chaos on the global financial system.<\/div>\n<\/div>\n

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Bloomberg reports<\/a> that given how mainland stocks have become increasingly linked to global markets, however, the divergence may prove to be a short-term phenomenon, according to Daniel So, a strategist at CMB International Securities Ltd. in Hong Kong.<\/p>\n

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\u201cThe Chinese government is squeezing speculation out of the market and while investors adjust,<\/strong> it will inevitably lag behind other parts of the world,” So said.<\/div>\n<\/blockquote>\n
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And as we noted previously,<\/a> for a market relying more on liquidity than fundamentals, China\u2019s worsening monetary conditions index suggests tough times ahead…<\/em><\/strong><\/p>\n

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China\u2019s deleveraging drive and the renewed focus on market irregularities have put the mainland share market into a \u201cbad mood,\u201d but officials aren\u2019t likely to tolerate a lot of instability ahead of the Communist Party\u2019s twice-a-decade leadership reshuffle later this year<\/strong>, said George Magnus, a former adviser to UBS Group AG and current associate at the University of Oxford\u2019s China Centre.<\/p>\n

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“The authorities are trying to calm down leverage and housing at the margin but will not go any further than the minimum necessary,\u201d<\/strong> he said. \u201cIf it looks as though regulatory tightening is delivering unfavorable outcomes, and risks any form of instability, you won\u2019t be able to say the world \u2018backtrack\u2019 fast enough.”<\/p>\n<\/blockquote>\n

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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Chinese Stocks Give Up Trump Gains As $1.7 Trillion Source Of Funds Unwinds The Chinese and U.S. stock markets are going in opposite directions, as an intensifying crackdown against leverage has slammed the recently ‘stable’ Shanghai Composite over the past week, erasing all post-Trump gains. The relatsionship between the two markets is the weakest since […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,6537,827,4318],"class_list":["post-23765","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-shanghai-composite","tag-united-states","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23765"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23765\/revisions"}],"predecessor-version":[{"id":23766,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23765\/revisions\/23766"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}