The sinking of 2,700,000,000,000 yuan in a day is not just a 'market crash' but an alarm bell for the global economy.
The logic behind it:
The crisis in the property sector: A large part of China's economy was built on real estate, which is now falling apart like a pack of cards.
Investor distrust: Foreign investors are now pulling their money out of China and moving it to safe havens (such as gold or the US dollar).
Technology restrictions: The global trade war and restrictions on technology exports have brought the valuation of Chinese companies to the ground.
This loss of 2.7 trillion shows that the magic of 'Made in China' is now weakening in the global market. If this trend continues, its effects will not be limited to Beijing, but will affect the entire supply chain of the world.
The logic behind it:
The crisis in the property sector: A large part of China's economy was built on real estate, which is now falling apart like a pack of cards.
Investor distrust: Foreign investors are now pulling their money out of China and moving it to safe havens (such as gold or the US dollar).
Technology restrictions: The global trade war and restrictions on technology exports have brought the valuation of Chinese companies to the ground.
This loss of 2.7 trillion shows that the magic of 'Made in China' is now weakening in the global market. If this trend continues, its effects will not be limited to Beijing, but will affect the entire supply chain of the world.
