Half a trillion dollars wiped from China markets in a week as clampdowns shatter confidence

[REhorror]

Stock market is not real.
China does have things to worry about, such as food sufficiency, weather warfare and US provocation in Taiwan, but stock market is not a problem.
There are a lot of hanjan in chinese big corporations.

 

[letsrock]

Yeah, the regulations are good and healthy in the long term. It's not gonna materially affect their companies' earnings. Tencent and Alibaba's market value fell around 50%; it's not like their long-term profits are gonna fall 50% lol.

Their state media did try to calm down and reassure investors. They are even arguing that it's an opportunity to "buy the dip" lol. But I guess there is still a general lack of distrust and bias against China, which is a pity.

Pain of China’s Big Tech crackdown a necessary short-term cost: state media

The piece was published as investors begin to reconsider the risks and returns of Chinese tech stocks.

www.scmp.com

Beijing assures support for Chinese firms’ overseas IPOs amid crackdown

Chinese companies can expect no significant policy change in overseas listing procedures, according to a commentary by Xinhua.

www.scmp.com

China’s state media try to calm stock investors after US$574 billion rout

State-run newspapers such as the Securities Times and the Securities Daily ran articles talking up China’s battered onshore and offshore stocks after a panic sell-off motivated by regulatory crackdowns.

www.scmp.com

That is not enough. There have been too many mixed messages. For example ordering a prominent real estate company to reduce its debts. And the sudden disappearance of Jack Ma from public discourse. And also the discourse that these companies need to "give back" (companies are not govt. giving back is govt work not companies. govt can tax them and give back).

The thing is chinese govt definition of harmony is that whoever had a different viewpoint is immediately silenced. Now as long the people who are silenced are marginalized minorites/political dissidents etc the world unfortunately "understands". But when the people who are silenced are their golden boys like Jack Ma it tends to spook others especially markets.

I fully understand that people like Jack Ma are no angels. Some of the business practices of Alibaba are notorious and would never be accepted in usa.

I think china is still new to the art of signalling to markets.

Maybe there is a reason they are not making this point clear? Maybe they want more than you think they do from these big companies?
After all, Xi Jinping has a different ideology from your past leaders. He seem to be less inclined towards profit seeking private companies and more on urging these companies to be less focused on profitability and more on social responsibility or ''socialism with Chinese characteristics'' or whatever that even means. Reason he has made it clear that he wants a bigger share for state owned companies to be the dominant ones in china(even more than they are already), since they listen more to government policy/demands instead of profits. So it will be good to see how things will play out in future in this field. Since private Chinese companies have always been on the disadvantage compared to their dominant state owned counterparts since private companies received little to zero support compared to the huge favours/protection/support state owned conglomerate enjoy. So private Chinese companies have done very well to strive and grow despite all odds stacked against them actually. So for some of them to have grown so large to this extent is actually surprising. However, they have done so ONLY IN SECTORS THEY HAVE BEEN ALLOWED TO COMAPETE/TAKE PART IN. Since Chinese government forbids private companies from even getting involved in many sectors, where they maintain the monopoly of state owned companies.
So private companies in China have hustled their way out by shedding alot of sweat, especially in a quasi state dominated industry/system. Just look at how Ali pay rendered useless the other state owned financial companies who never achieved anything ground-breaking and where only seating on their ***. Ali pay changed everything when they came on and revolutionised Chinas financial payment system and made life far easier for most Chinese. If they were barred from even taking part in that sector then china's financial payment system will still be as backward/slow/inefficient and cumbersome the way it was when state owned companies dominated the market with their monopoly.

PRIVATE COMPANIES WILL ALMOST ALWAYS OUTPERFORM STATE OWNED ONES IF GIVEN A LEVEL PLAYING FIELD, OR EVEN IF GIVEN JUST AN OPPORTUNITY TO DO. So if anything the Chinese government should be encouraging it's private sector much more, not less.

Yes there have been messages like that which is confusing. Because china allows these companies to list abroad and raise capital.

Actually in some areas like payments China allowed private companies to almost take over. Payments are one easy source of revenue of banks. With alipay and wechat these banks simple got disintermediated.

Funnily if china digital currency gets mass adoption both alipay and wechat are gonna be disnterimediated too or atleast increase their cost of business a bit.

 

[Globenim]

"Oh no the evil CCP is opressing capitalist billion Dollar corporations with stabilizing market regulations and improving civil rights! What are the people gonna eat without speculation on the stockmarket and unbroken trust of American elites covertly running with all their money away to China"

Gotta love those American state propaganda mouthpieces and their paid troll armies just trying to talk sh*t about China whatever happens

 

[Wood]

The capital flight will recover in a few years. Even delisting from Nasdaq will only have a one time impact.

The only real threat for Chinese companies is a direct conflict with US. Infact, that will be a disaster for both sides.

 

[Skull and Bones]

Good time to go scalping cheap stocks, Alibaba, JD, Tencent and Baidu are in my list.