Short the privately-owned companies cuz if they go down, they are not getting any bailouts from the CCP.
What China is doing is basically taking the trade war into the arena of the financial market to try to weaken the western economies thus the political strength because our financial market is our last frontier that they haven't broken yet, not completely. Thus Soros said Blackrock and Goldman Sachs still handing $$ to China is posing national security risks. He is absolutely right on this one. I hope Blackrock is seeing this now with this very likely defaulting of the Evergrande bonds, at least on foreign bonds. This Evergrande default this time will not bring about a financial crisis the magnitude of that from 2008 but if we keep investing in China without any way to protect ourselves against the systematic and political risks, it will only be a matter of time that we become over-exposed and the default of the next company in China will really bring us down. With everything tightly controlled and manipulated by the government in countries in China, you never know when and how the next default is going to come about.
I'll get them back the same way. I'm defaulting on my credit cards so I can't buy Chinese goods and supplies. I am rather skeptical that BR and GS have significant balance sheet exposure to China. Rather, they want to keep that fee income from managing OPM and stay good friends with China. The Chinese people will suffer the most from this. Not that the CCP gives a rat's ass, but they do want social stability. To the US, China is just a store. When the mall closes, you find a new one. I would not blame this market on China though I blame them for many other ills.
Between China, inflation, tapering etc I would not be surprised to see a significant correction soon, eg next week. Today we may get whipsaw price action after the fed. Green open red close...?
Yeah but Blackrock and Goldman Sachs is teaching and implementing in China the "technology" to create innovative financial products cuz China wants its people to diversify their investments away from stocks and real estate but it doesn't know how. Beware of "technology theft". Yeah it's great that they are earning the fee now. What about in the future? And it's good that their exposure to China's investment is low. Hope they keep it that way especially what's happening with Evergrande. Yes agreed. Majority of the bond is held in Chinese people's hands. Hence one of the onshore subsidiaries of Evergrande is making interest payments on its bonds this Thursday. To US, China is not just a store but also cheap labour and a massive market, all 3 in one, well until it all got f***ed up.
If the Feds is smart and says the right thing, we might have green open green close or at least green open flat close, no red. Fingers crossed.
The markets opinion is what matters most and if price went there, and it did, it has to be respected.
October 2020 had a more bearish tone and drop to it and that was a great buying opportunity. In fact, if you look back at this site back then, the usual suspects were on here talking up a crash back to March 2020 lows.