If I recall a fair portion was tied to real estate related companies
their real estate market collapsed because it was basically a ponzi scheme. people were paying mortgages on houses that werent even built yet.
after covid the chinese president also started cracking down on tech and other private sectors to put them under more party regulation. there are no private companies in china. all chinese corporations are basically owned by the government.
thats why the US is trying to limit or ban chinese companies from operating in the US domestic market on the grounds of concerns for national security. (their words not mine)
after that chinese millionaires and billionaires are leaving for more capital friendly nations like the US, UK, UAE, etc. they basically fucked themselves in order to consolidate power.
billionaires who question the CCP disapearing without a trace is a thing that happens surprizingly often in china. look up what happened to the founder of alibaba
If I recall a fair portion was tied to real estate related companies
It’s not the stock market it is winnie poos economic politic
Communist stock market
Why the hell are they using Dow Jones for this comparison. It has 30 companies in it. Data for S&P 500 is just as easily available and is more representative of the market.
I am not an expert, but I do know there are a few issues involved with the SSE. Firstly, only Chinese nationals are allowed to invest on the exchange. Secondly, Chinese personal investment is driven largely by real estate. After the Evergrande default debacle in Dec ‘21, the real estate market imploded and drove down the economy. The drop in the exchange happened around q1 of ‘22.
Because China is still a communist country and it’s much harder to understand the health of their economy, I think this raises a good point that they aren’t doing as well as they say.
its a sham economy
The real estate market is an obvious issue, but the legal situation with equity in China is also a fairly large and overlooked issue. Business people get punished for saying they would like international investors.
Because the economy doesn’t depend on the stock market, there’s no one’s getting rich speculating to get rich with stocks. Unlike other countries…
Debt, debt, debt. A massive amount of which is on-the-books, and another massive amount of which is off-the-books.
They were propping up their economy with a real estate bubble and it popped.
Now they’re in the same state Japan is: Declining birth rates due to modernization exacerbated by income inequality putting the breaks on the growth cycle needed for a modern capitalist country to keep ahead of the voracious appetite of modern corporations and private equity.
China is run by communists. They don’t care about their stock market. They only care about growing their real economy, and increasing production of goods and services.
The stock market is not the economy. China isn’t poorer because their market is down. They’re the richest country in the world by purchasing power.
It’s the name. It isn’t cool enough so nobody is interested. Why do you think Nifty 50 is doing the best? It’s NIFTY!!!
So what else is new ? Keep wages down, search for markets. oppressed labor, turn their paper into your money, buy back stocks, lower the the tax to 15% or 20% and stocks are going to take off.
Then have their pre-tax retirement programs send billion$ every payday to mutual funds most of which can’t even match the S&P 500 pump up stocks to ridiculous levels, they cash out in million$ and billion$.
Never forget that about 90% of stocks are still owned by the richest 10% of Americans.
Damn, I need to invest in India nifty 50
Three ultra rich people cashed out and bought another fleet of mega yachts.
most common CCP L
Because china has a real economy and not just a stock market
Well, hard to say just looking at those numbers, but if you’re really interested, look up what makes up the stock index and look at each stock individually. Should be quite a bit of work though
23 comments
CCP stupidity
Communism at work.
Low demand
If I recall a fair portion was tied to real estate related companies
their real estate market collapsed because it was basically a ponzi scheme. people were paying mortgages on houses that werent even built yet.
after covid the chinese president also started cracking down on tech and other private sectors to put them under more party regulation. there are no private companies in china. all chinese corporations are basically owned by the government.
thats why the US is trying to limit or ban chinese companies from operating in the US domestic market on the grounds of concerns for national security. (their words not mine)
after that chinese millionaires and billionaires are leaving for more capital friendly nations like the US, UK, UAE, etc. they basically fucked themselves in order to consolidate power.
billionaires who question the CCP disapearing without a trace is a thing that happens surprizingly often in china. look up what happened to the founder of alibaba
If I recall a fair portion was tied to real estate related companies
It’s not the stock market it is winnie poos economic politic
Communist stock market
Why the hell are they using Dow Jones for this comparison. It has 30 companies in it. Data for S&P 500 is just as easily available and is more representative of the market.
I am not an expert, but I do know there are a few issues involved with the SSE. Firstly, only Chinese nationals are allowed to invest on the exchange. Secondly, Chinese personal investment is driven largely by real estate. After the Evergrande default debacle in Dec ‘21, the real estate market imploded and drove down the economy. The drop in the exchange happened around q1 of ‘22.
Because China is still a communist country and it’s much harder to understand the health of their economy, I think this raises a good point that they aren’t doing as well as they say.
its a sham economy
The real estate market is an obvious issue, but the legal situation with equity in China is also a fairly large and overlooked issue. Business people get punished for saying they would like international investors.
Because the economy doesn’t depend on the stock market, there’s no one’s getting rich speculating to get rich with stocks. Unlike other countries…
Debt, debt, debt. A massive amount of which is on-the-books, and another massive amount of which is off-the-books.
They were propping up their economy with a real estate bubble and it popped.
Now they’re in the same state Japan is: Declining birth rates due to modernization exacerbated by income inequality putting the breaks on the growth cycle needed for a modern capitalist country to keep ahead of the voracious appetite of modern corporations and private equity.
China is run by communists. They don’t care about their stock market. They only care about growing their real economy, and increasing production of goods and services.
The stock market is not the economy. China isn’t poorer because their market is down. They’re the richest country in the world by purchasing power.
It’s the name. It isn’t cool enough so nobody is interested. Why do you think Nifty 50 is doing the best? It’s NIFTY!!!
So what else is new ? Keep wages down, search for markets. oppressed labor, turn their paper into your money, buy back stocks, lower the the tax to 15% or 20% and stocks are going to take off.
Then have their pre-tax retirement programs send billion$ every payday to mutual funds most of which can’t even match the S&P 500 pump up stocks to ridiculous levels, they cash out in million$ and billion$.
Never forget that about 90% of stocks are still owned by the richest 10% of Americans.
Damn, I need to invest in India nifty 50
Three ultra rich people cashed out and bought another fleet of mega yachts.
most common CCP L
Because china has a real economy and not just a stock market
Well, hard to say just looking at those numbers, but if you’re really interested, look up what makes up the stock index and look at each stock individually. Should be quite a bit of work though