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Chinese equities are in a bear market. & Nbsp; Could things get worse this week with the return of local retail investors & nbsp; on the market after the holidays of the Golden Week? (AP Photo / Ng Han Guan, File)
This tweet from Vice President Mike Pence was sent last Thursday.
.@POTUS Trump's management is working, and China wants a different US president. China mingles with American democracy. As @POTUS Trump said last week we "found that China was trying to interfere in our upcoming mid-term elections." pic.twitter.com/EvPQxVlsdq
– Vice President Mike Pence (@VP) October 4, 2018
US investors have not worried as much as they should have seen, but they might see a different view on Monday Monday in Shanghai, when locals will wake up from a week of sleep and return to the gambling halls of the city. Mainland China stock markets. Do not be surprised if China opens the limit on Monday .
The frightening thing about Pence's comments came shortly after Bloomberg Businessweek published a report about how chip makers in China were installing devices in Apple and other products to spy on tech companies (denied by Apple) is the little electoral interference.
The 2017 Law on Combating American Oppressors through Sanctions has made Russia a major focus. But he has identified electoral interference as a weak point for Washington, which would force Congress to act with potential economic sanctions. If you can punish Russia for electoral interference, why not punish China? While Washington is known for its heartbreaking hypocrisy, the fact is that Pence has opened a Pandora's box. Washington could well punish China, for real. It would not only be bad for Chinese investors, but the S 500 multinationals would also take him by the throat. Suffice it to say that a cold war with China and a trade war with China are not only harmful to China. There is simple calculation on that one. The Chinese retail investor will weigh on this issue today and the rest of the week as the Trump Administration threatens new rates.
Short sellers are impatient. They are pretty firmly in the camp that China loses the trade war. Today, short sellers are wondering if sanctions against China are a possibility. As Pence says, if China intervenes in the elections, and if the intelligence agencies accept it, then the sanctions situation is based on the CAATSA law. recently signed orders.& nbsp; These commands do not mention a country name.
In addition, sanctions could be used to get Xi Jinping to fulfill some of his wishes.
US Secretary of State Mike Pompeo is visiting China on Monday. For Beijing, any sanctions against them would be a sudden shock to their role in global supply chains. & Nbsp; The Pompeo meetings in Beijing on Monday could help clarify Trump's intentions. We have seen these meetings go nowhere in the past, however.
China's central bank is getting nervous. The morning of South China reported Sunday that she plans to inject $ 110 billion into the economy.
Zhang Ming, a researcher at the Chinese Academy of Social Sciences, told the Hong Kong daily that the small economic stimulus package responded to the fact that China would face Trump's trade difficulties.
"An intensification of trade disputes with the United States will weaken the role of trade in growth," the paper said in a research note written by Zhang Ming. "If exports slow down because of trade disputes, the impact will affect investment in the manufacturing sector."
The People's Bank of China (PBoC) also employs to prevent the yuan from weakening against the dollar, although a possible weaker currency may be needed if Beijing estimates that its exports are more attractive. A cheaper yuan means lower prices for products made in China.
The PBoC's foreign exchange reserves reached their lowest level in 14 months in September. Reserves fell by $ 22.7 billion in September to reach $ 3.09 billion still astronomically high in China's central piggy bank. However, this decline is the largest since February and far exceeds the $ 8.23 billion in August.
Economists polled by Reuters have totally wronged the draw of the PBoC. Survey respondents said reserves would decrease by $ 5 billion.
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Chinese equities are in a bear market. Could the situation get worse with the return of local retail investors after the Golden Week holidays? (AP Photo / Ng Han Guan, File)
This tweet from Vice President Mike Pence was sent last Thursday.
.@POTUS Trump's management is working, and China wants a different US president. China mingles with American democracy. As @POTUS Trump said last week we "found that China was trying to interfere in our upcoming mid-term elections." pic.twitter.com/EvPQxVlsdq
– Vice President Mike Pence (@VP) October 4, 2018
US investors have not worried as much as they should have seen, but they might see a different view on Monday Monday in Shanghai, when locals will wake up from a week of sleep and return to the gambling halls of the city. Mainland China stock markets. Do not be surprised if China opens the limit on Monday .
The frightening thing about Pence's comments came shortly after Bloomberg Businessweek published a report about how chip makers in China were installing devices in Apple and other products to spy on tech companies (denied by Apple) is the little electoral interference.
The 2017 Law on Combating American Oppressors through Sanctions has made Russia a major focus. But he has identified electoral interference as a weak point for Washington, which would force Congress to act with potential economic sanctions. If you can punish Russia for electoral interference, why not punish China? While Washington is known for its heartbreaking hypocrisy, the fact is that Pence has opened a Pandora's box. Washington could well punish China, for real. It would not only be bad for Chinese investors, but the S & P 500 multinationals would also take it by the throat. Suffice it to say that a cold war with China and a trade war with China are not only harmful to China. There is simple calculation on that one. The Chinese retail investor will weigh on this issue today and the rest of the week as the Trump Administration threatens new rates.
Short sellers are impatient. They are pretty firmly in the camp that China loses the trade war. Today, short sellers are wondering if sanctions against China are a possibility. If China intervenes in the elections, as Pence says, and if the intelligence agencies accept it, it opens the way to a sanction based on the CAATSA law and recently signed decrees. These commands do not mention any country names.
In addition, sanctions could be used to get Xi Jinping to fulfill some of his wishes.
US Secretary of State Mike Pompeo is visiting China on Monday. For Beijing, any sanctioning action against them would be a sudden shock to their role in global supply chains. The Pompeo meetings in Beijing on Monday could help clarify Trump's intentions. We have seen these meetings go nowhere in the past, however.
China's central bank is getting nervous. The morning of South China Sunday announced its intention to inject $ 110 billion into the economy.
Zhang Ming, a researcher at the Chinese Academy of Social Sciences, told the Hong Kong daily that the small economic stimulus package responded to the fact that China would face Trump's trade difficulties.
"An intensification of the trade conflict with the United States will weaken the role of trade in growth," the paper said in a research note written by Zhang Ming. "If exports slow down because of trade disputes, the impact will affect investment in the manufacturing sector."
The People's Bank of China (PBoC) also employs to prevent the yuan from weakening against the dollar, although a possible weaker currency may be needed if Beijing estimates that its exports are more attractive. A cheaper yuan means lower prices for products made in China.
The PBoC's foreign exchange reserves reached their lowest level in 14 months in September. Reserves fell by $ 22.7 billion in September to reach $ 3.09 billion still astronomically high in China's central piggy bank. However, this decline is the largest since February and far exceeds the $ 8.23 billion in August.
Economists polled by Reuters have totally wronged the draw of the PBoC. Survey respondents said reserves would decrease by $ 5 billion.
