China's financial markets are experiencing significant turmoil, with the country's tech giants increasingly reliant on China despite public distancing, as noted by John Herrman. The recent firing of the head of China’s securities watchdog following stock market instability has not alleviated concerns, as the real estate market contraction worth 8 trillion yuan leads to a global financial avalanche, affecting commercial real estate banks worldwide, including regional banks in the US. The US stock market, particularly the S&P 500, has reached record highs, while China and Hong Kong markets have lost $1.5 trillion in January. Investors are wary, with some allocating 5-10% of their portfolio to Chinese stocks but prepared for potential losses, indicating a lack of confidence in the market's recovery. The crisis has prompted a shift in investor focus from China to India and other regions, reflecting growing tensions between Washington and Beijing. The commercial real estate sector in the US is also showing signs of distress, with the impact of the CRE debt crisis spreading to banks globally, including the collapse of Credit Suisse.
The shakeup at China's markets regulator was a long time in coming and sent shockwaves across the industry when it finally went down https://t.co/oSOQ7UPRAO
Investors once thought that China’s politics need not encroach on their ability to make money. Now that they know there is no escaping politics, they will tread more fearfully https://t.co/l6swrrO3IA 👇
Advice: Watch the real estate/regional banking sector over the next few months. Something is brewing here.
Very cool to see my book play a role in turning “a liberal billionaire” into “America’s leading anti-DEI crusader.” And Bill Ackman is not the only one. Many of the wealthiest men in tech and finance are moving money rightward. https://t.co/0Pfb88yWTv
“Too big to fail” was bad enough. But following the mini banking crisis of 2023, we now also have “too many to fail,” worry Raghuram G. Rajan and Viral V. Acharya. https://t.co/xob1RyzDvS
Here are six charts that explain how the impact of the CRE debt crisis has spread to banks https://t.co/C4qWKyLDai
🚨 Banking system update🚨 🧵👇 We're back discussing regional banks in the US, not because of rate hikes as suggested last year, but due to commercial real estate. The speculative bubble fueled by the government in 2021-2022 is now bursting, and it seems taxpayers might once… https://t.co/fg9VaVBguF
The US/China asymmetry is remarkable. America's political confusion bewilders our allies around the world, while the US attracts both their money and their best youth. In China, Xi's abrupt decisions & bellicosity that drove out many foreigners are now driving out elite Chinese
The collapse of Credit Suisse seemingly marked the nadir of the 2023 flash banking crisis but now the focus is shifting to commercial real estate loans and more banks in the US, Germany and Japan are taking a hit. Read it here in The Brink. https://t.co/1qaTgQd1mL
For China’s wealthy, the present market turmoil in the country is unprecedented and disorienting. While the authorities still seem keen to shield the poor from turmoil in the financial system, the rich are a different story https://t.co/RynENHfM3U 👇
A 99% #Chinese Bond Wipeout Hands Hedge Funds a Harsh Lesson on #China "We trust China" they said. "We trust the Chinese market" they said. "We trust the strength of the Chinese economy" they said. Firms have long been aware of state’s role in restructurings. Yet… https://t.co/FkzlWeuEtU
An economic recovery that was expected to play out in China in 2023 faltered during the first half of the year. Pessimism has clouded the market ever since. The situation ought to worry Xi Jinping, the country’s leader, for several reasons https://t.co/q7hdWZ9IlX 👇
China’s housing market has seized up—and more than $1trn in market value has been wiped from exchanges in China and Hong Kong since the start of the year. What will stop the pain? Listen to our “Money Talks” podcast: https://t.co/DthRvDjkMq 🎧
Add the CRE (commercial real estate) collapse in the US to this and real estate is in for some troubled times. https://t.co/m08Zccmj3M
China’s property crisis is starting to ripple across the world. Chinese investors and their creditors are putting up “For Sale” signs on real estate holdings across the globe as the need to raise cash amid a deepening property crisis at home trumps the risks of offloading into a…
The shift reflects the growing tensions between Washington and Beijing as well as U.S. efforts to import from countries that are friendlier and closer to home. https://t.co/nVsLU1Dq9V
The regional banking crisis 2.0 is - Not regional! Banks/financial institutions across the globe are having issues - Not about deposits! The combination of declining property values and high interest rates causes souring loans and spiking provisions. https://t.co/tQR9XMWvvS https://t.co/CN0xpj1NPx
A historic shift is under way as investors pull billions from China — and move much of that into India. https://t.co/9qiEdE6kGl
Phew! The govt did manage to stop the rout in China’s stock mkt before Lunar New Year holiday started today. But this piece of firefighting is not going to resolve the funk in confidence. I explain here: How the Chinese markets lost faith in the CCP https://t.co/DWDrWYuDGK
San Francisco tech tycoons are pouring money into moderate lawmakers' election campaigns in bid to unset progressives they blame for destroying city https://t.co/lNi3acNO48 https://t.co/TYgb0LAVYF
In China, investors are feeling the pain everywhere you look—but no government rescue package seems to be on the way. So how worried should people be? Listen to this week’s “Money Talks” podcast: https://t.co/zfZ1Vtc3Na 👇
Leftist San Francisco Mayor Scrambles For Survival By Backing GOP Effort To Restore Law & Order https://t.co/zBFdJ0VbEe
China's financial system is currently a giant game of hot potato, to see who will have to take the paper losses from the real estate bust. This article is a clue as to who is going to take the hit: https://t.co/u5uOsjuVJV
"The government has curbed short-selling, and state-owned asset managers have been ordered to buy stocks. This may prop up stock prices for a time. But such meddling only betrays China’s mistrust of markets, underlining why investors have left." https://t.co/U2jyZZ7a9g
Even as America’s S&P 500 index reached record highs, markets in China and Hong Kong shed $1.5trn in January alone. Regaining investors’ trust requires a rethink of the state’s role in the economy. But Xi Jinping is unlikely to soften his grip https://t.co/hTtzqy54T6 👇
A positive development, it seems. Tech Millionaires Take On Politicians in a Fight to Fix San Francisco https://t.co/RS9mjsrwom via @WSJ
"One fund manager said he may put 5-10% of his portfolio in Chinese stocks but is fully prepared to lose it...Another admitted that the economic climate in #China is "clearly awful" but his firm is putting money there, essentially as a hedge" https://t.co/SBd9L7m97d
China's real estate market has already contracted by 8 Trillion Yuan. According to @briangobosox, it's not over yet. Here's his outlook: - the bursting of the Chinese property bubble is in early innings... prepare for "wealth destruction on a scale we've never seen before." -… https://t.co/1PnO4Oiihx
Regional banks are in the spotlight again as cracks begin to show in their balance sheets due to the ongoing distress in the commercial real estate sector. https://t.co/l8wSDJYQzx
The US is a political mess with a splendid economy. All is in order in China just as Xi commands but its youth unemployment is very high, its stock market is very low, the construction and infrastructure industries are stalled and young Chinese entrepreneurs are emigrating.
INTERVIEW Commercial Real Estate Bank Crisis Avalanche In every developed nation all the leaders marched in lock step and locked down the population, starting a global financial avalanche @geraldcelente, TrendsJournal dot com explains the trend in bank failures that's about to… https://t.co/pbTcEzzpEQ
Weeks of stockmarket instability led to the abrubt firing and replacement of the head of China’s securities watchdog. But the country’s stockmarket nightmare is nowhere near over. Most foreign investors hold little hope for a recovery any time soon https://t.co/0VWVHpJPr6 👇
America’s tech giants have made a show of distancing themselves from China, but in many ways their dependence on it has actually grown, writes John Herrman. https://t.co/Z8FNIONGdl