Chinese stocks tank in trade war

Good news, America. The South China Post reported, "Shanghai’s stock benchmark ended 2018 as the world’s worst market performer for a second year, falling 24.6 per cent over 12 months as an unprecedented trade war between China and the United States weighed on the Chinese economy and crimped corporate earnings."

The newspaper went on to say, "The city’s key stock index closed the year at 2,493.90, while the benchmark on the smaller Shenzhen bourse fell 33.2 per cent during the period to 1,267.87. The combined capitalization of the two exchanges fell by US$2.4 trillion to 43.3 trillion yuan (US$6.3 trillion) during the year, overtaken by Tokyo as Asia’s largest equity market."

So Chairman Xi's refusal to compromise with President Trump has cost his country $2.4 trillion so far in 2018.

That's enough to build 96 Mexican walls.

In fact, that's six times the American trade deficit. In short, for every $1 in profit Red China took in trading with the USA, it lost $6 in its net worth.

Chairman Xi's ignorance of capitalism is Obaman in scale. He needs to cut a deal. Stat.

Li Wenhui, an analyst for Huatai United Securities. told the newspaper, "The stock market is often the barometer of a nation’s economic health, and the weakness in China’s A-share market reflects the serious troubles in the Chinese economy."

In a companion story, reporter Orange Wang wrote, "China’s industrial profits declined in November for the first time in nearly three years, reflecting the continued slowdown in the economy due largely to the effects of the trade war with the United States.

"The 1.8 per cent decline last month compared to a year earlier, the first drop since December 2015, comes after industrial profit growth had decelerated in each of the previous seven months, according to data released by the National Statistics Bureau on Thursday."

President Trump is playing poker with Chairman Xi except The Donald holds all the cards.