Foreign investors sell Chinese shares

Last week Xi Jinping not only got confirmed for a third term as Chinese President (in a break with the two-term rule put in place by Deng Xiaoping), but his loyalists got elected to all positions of power, displacing people who were holdovers from Hu Jintao's presidency.

This seems to have turned China into a black box. See this tweet:

https://twitter.com/Junheng_Li/status/1584606496742027265

Ray Dalio is the hedge fund investor who ran Bridgewater Associates.

The question, "Will he liquidate his China positions" is a good one. If you can't tell what's going on, it's too risky to hold.

Others are also thinking the same thing. This is what happened to Chinese shares listed in the United States:

source

Chinese shares listed on the Hang Seng Exchange in Hong Kong also fell 7.3%.

The yuan also fell as foreigners pulled their money out.

The people I feel sorriest for are the entrepreneurs who set up these businesses during the Jiang Zemin and Hu Jintao presidencies. Their dream of prosperity is dying.