Waiting is a PATIENCE gameRead latest news here
Unlike the US that has no choice but keep on printing billions of dollars, China has recognised its stratospheric debt problems and are doing something about it. The case of Evergrande is a classic case where investors and government officials are watching like a hawk to see if Chinese Government will intervene. The bankruptcy of Evergrande if it happens is catastrophic as it involves many financial institutions as well.
It will cause a dent in the financial system and cause panic in the market which could lead to a major sell off, something that they do not want to see. The recent Chinese data has also been disappointing, failing to calm the nerves of its loyal fans - both institutional and retail investors.
While money has been pumped in of late to help prop up the stock market, little changes have been effected todate with popular stocks like Alibaba, Meituan , Tencent still heading south, dampening the mood of the retail buyers.
But some stocks are hopeful , offering a glimpse of hope that the bottom is near or have reached and I will be covering some of them separately. Watch out for it !
