{"id":133161,"date":"2021-07-23T16:24:01","date_gmt":"2021-07-23T16:24:01","guid":{"rendered":"https:\/\/precoinnews.com\/?p=133161"},"modified":"2021-07-23T16:24:01","modified_gmt":"2021-07-23T16:24:01","slug":"chinas-economy-has-plateaued-says-bloomberg-analyst","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/chinas-economy-has-plateaued-says-bloomberg-analyst\/","title":{"rendered":"China’s Economy Has Plateaued Says Bloomberg Analyst"},"content":{"rendered":"
“China’s rejection of open-source software crypto-assets may mark a plateau in the country’s economic ascent, we believe,” says Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence.<\/p>\n
Hedge fund manager Anthony Scaramucci has gone even further, saying that the recent regulatory crackdowns from the Chinese government equate to a “Tiananmen Square moment of capitalism” meant to regain control over the country’s business leaders.<\/p>\n
Didi’s shares fell another 10% today with educational Chinese stocks also dropping following potential new regulations, while investors are asked to divest from US listed Chinese stocks.<\/p>\n
Stocks in TAL Education (ticker: TAL) are down 54% in premarket trading. New Oriental Education & Technology (EDU) stock is off 48%. Shares of Gaotu Techedu (GOTU) have dropped 59% and shares of 17 Education & Technology (YQ) are down almost 40%. <\/p>\n
The Shanghai index dropped another 0.7% today with the Hang Seng Index down by 1.45%.<\/p>\n
The MSCI China Index has dropped 20% since February as investors start accounting for the political risks of investing in China.<\/p>\n
In contrast Dow Jones is up 0.38%. FTSE 100 has gained 0.67%. Bitcoin has risen to about $32,500 while eth just about touched $2,100, currently trading at $2,064.<\/p>\n
As the outlook for investment in China is seemingly becoming a political minefield, the big question is where all this money will go.<\/p>\n
We may see the reverse of what happened in 2008 when economic troubles in USA turned big money’s focus on the then fast growing emerging markets and China in particular.<\/p>\n
Now, if China’s economy starts becoming a bit shaky, the focus may return to America and Europe for long term investment, as well as perhaps to bitcoin for somewhat more risky long term investments, with a lot of money potentially on the move currently following these huge sell-offs of Chinese stocks.<\/p>\n