Thread by @georgemagnus1

Interesting chart from Capital Economics showing how mkt valuation of Chinese equities has slumped to lowest since the 14/15 crash, other than covid in early 20. How much further will this go? /1

Or is this the buying opportunity many hope it represents? The answer is strongly weighted towards the former, ie China’s robust moves to restrain free and open capital markets is part of a wider script even allowing for ostensibly reasonable social agenda goals. /2

So acting pro ppl who can’t afford expensive tutoring, gig workers, data privacy all seem fair, but the bigger picture is a political clamp down on private firms and entrepreneurs. Remember ‘the party leads everything’, and we can see evidence predating Ant by a long way /3

This campaign isn’t going away any time soon, and while the regulators proclaim they’re not tone deaf to the markets, they’re not the ones calling the shots. Chinese equities are still v much in a bit of a war zone. Ends