Market Review and Trends
China Tech Bloodbath – Is this the bottom for China stocks?
By Financial Horse  •  March 20, 2022
On Monday (14 March), we had the worst sell-off in China stocks since the 2008 Financial Crisis. Fear of US sanctions led to indiscriminate selling, with names like Tencent and Alibaba down 10%. On Wednesday (16 March), Vice Premier Liu He, the country’s top economic official decided enough was enough. He released a policy statement that said that the government should “actively introduce policies that benefit markets”. Stocks roared back. Nasdaq Golden Dragon China Index jumped by 33% Wednesday. Tech giants Alibaba and Tencent surged 37% and 23%, respectively in one day. By Thursday (17 March), Chinese stocks had had their biggest two-day advance since 1998. So… Is this the bottom for China stocks? What exactly did Liu He (or the Chinese Financial Stability and Development Committee) say? Here’s the full statement in Chinese (with English translation) for those who want to dive into the exact words. Otherwise, I’ve provided a simple summary below:...
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By Financial Horse
Financial Horse was started to demystify financial investments. He is a firm believer in Einstein’s quote that “If you can’t explain it to six-year-old, you don’t understand it yourself.” Too much of finance is shrouded in complex jargon, and Financial Horse gallops through the mysteries ...
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