Worry Over Xi Spurs Record Selloff of China Stocks in US

The video discusses the market's reaction to President Xi Jinping securing a third term, highlighting a significant decline in the Golden Dragon Index, which has returned to 2012 levels. Investors are concerned about the lack of market-oriented reformers in the government and the direction China is taking. The video also explores the alignment of investment objectives with government goals like common prosperity and dual circulation. It questions whether the government will intervene to stabilize the market, as it did in March, and whether policy changes, particularly regarding COVID, will occur.

What was a significant market reaction to President Xi Jinping securing a third term?

• The Golden Dragon index increased by 22%

• The Golden Dragon index declined by 22%

• The Golden Dragon index remained stable

• The Golden Dragon index increased by 10%

Why are investors concerned about the new standing committee?

• It includes too many market-oriented reformers

• It lacks recognized market-oriented reformers

• It focuses solely on international markets

• It has too many members from the technology sector

What are some of the objectives of the Chinese government mentioned in the video?

• Global expansion and market dominance

• Common prosperity and dual circulation

• Military expansion and resource acquisition

• Technological innovation and export growth

What is a major question regarding the Chinese government's role in the market?

• Whether they will increase taxes

• Whether they will support domestic equity markets

• Whether they will focus on international trade

• Whether they will reduce interest rates

What are investors questioning about the government's potential intervention this time?

• If they will increase interest rates

• If comforting words will be enough without policy changes

• If they will introduce new taxes

• If they will focus on international markets