Sentiment toward China’s frayed financial markets means rebounds that don’t last. Bridgewater Associates founder Ray Dalio, perhaps China’s biggest bull on Wall Street, unloaded his firm’s entire stake in e-commerce giant Alibaba amid a fire sale of its holdings in U.S.-listed Chinese stocks.

Here are some of the problem that is plaguing China now

1) Economic growth forecasts being slashed
2) Covid cases rising to a three-month high the government is still locking down economic activities to contain Covid
3) Potential geopolitics tension with US, Japan, and Taiwan
4) Water Crisis

The Chinese province of Sichuan extended industrial power cuts to deal with electricity supply deficiencies. Sichuan province mainly relies on hydropower and a scant rainfall since July, along with surging demand for air conditioning, have caused gaps in the power supply.

In short, it means more losses in stocks, outflows from bonds, credit defaults, and a weaker spending sentiment.

Source:iSquare