- Beijing isn’t using the world “purge” but that is what it is doing in China’s financial markets.
- An op-ed widely circulated in Chinese media called for the government to ‘destroy the decadent forces’ and ‘clean house’ in all realms of society, especially capital.
- No one knows when this will end. If you think you can time it, you’re playing yourself.
Don’t fool yourself, what’s happening in China’s financial markets is a political purge. There’s no telling where it will end, so it’s time for US investors to bail on Chinese stocks.
Beijing has been trying to quell investor fears by framing its crackdown on financial markets as isolated. It’s a few modest steps: taxing the wealthy, reining in tech companies, breaking up monopolists. Those may be some of the policy details, but the…