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Saturday, December 29, 2018

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.

21 comments:

  1. Orange Wang? He oughta have that looked at.

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    1. Definitely OFF his potential bride list: Apple Martin.

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    2. Can’t do a limerick on that dude...

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    3. Orange you glad Big D quoted him?

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    4. I wonder if he's ever read "Moby Dick?" - Elric

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    5. Cheetos and porn...fairly common apparently..

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  2. I'm now wondering if our markets are down partly because the Chinese don't have free cash to buy in with, or are having to free up equity to stabilize things back home.

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    Replies
    1. Partial explanation....the other half is the deflating balloon of twitter, fakebook, gulag, et al.
      .
      After reading Don's post, I happen to hear a snippet of straight white man hater radio (aka NPR) where they mention the US STOCK market correction, but never mention the COLLAPSE of the Chinese markets.

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    2. The latter, Doc. Makes perfect sense.

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    3. You just can't make this stuff up !!

      -WhoDat

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  3. Hey Wang...that’s a parking lot....

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  4. China built all these hugh unoccupied residental towers and the bill is now coming due. Things will only get worst

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    Replies
    1. The proper word would be worse, but, in this case, worst may well turn out to be right.

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    2. Hey -- maybe we can provide China with some of the illegals in our country to fill up their emtpy residential towers.

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  5. And don't think the world hasn't noticed.

    Chairman Xi's ignorance of capitalism is Obaman in scale.

    Now there's a line that speaks volumes about Communists.

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  6. President Trump is correct. China needs us, we don't need them. - Elric

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  7. I am thinking of the Song “the heat is on” with the changed title now “the squeeze is on”.

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  8. A limerick? Sure!

    When Sun Li Get Blues

    There once was an Orange PDT
    who tangled with Red Dragon Xi
    "I'm Orange," reported Wang
    "but he's orang-er than Tang!"
    Wang Tang-doodled, colorfully.

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  9. Does that mean the chicoms will have to hold off buying the rest of Australia and New Zealand, Pacific Islands too?

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  10. Why would commies care what happens to a capitalist icon like their stock market? Seems totally hypocritical for them to have one in the first place.

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