If you haven't been paying attention China's stock market and potentially the economy is completely on tilt if the market keeps going down and down and down and down for them. There could be clear Global ramifications, but here's what's going on. just trying to give you the skinny on the situation: Breaking nearly 30% of all stocks in China have stopped at the CSI index Falls 8% That is crazy so you can see today down 6% This is just basically the Chinese stock. Market if you look at it year to date, even worse down almost 27% Their Market is getting hit and it's getting hit hard.

Justin China's stock market has lost 1 trillion. I'm not saying million I'm not saying billion I'm saying $1 trillion in value just over 13 trading days 9 days in a row. This Market's getting hit and hit and hit. But what's really strange about it is it's particularly clustered in the small cap.

So the CSI 1000 the star 50 Beijing 50. You could see drop drop drop drop drop. But what's interesting CSI 100 the top 100 and the Hong Kong 50 the large caps are actually up. So it's the small and medium caps that are getting completely lambasted, completely destroyed, and then some of the largest ones are actually green.

But anyway, still very, very problematic. I mean a trillion dollars of value just poof gone like that. Uh China stock post more Wild swings after Beijing Stability vow key Equity Gauges fluctuate on Monday after big weekly slide Regulators Vow to stabilize markets on Sunday lack details So basically we've had this in the US where The Regulators are like uhoh, something's going on. that's pretty bad.

We're going to help and when they did that, but without the details, it kind of freaked out people even more. Hence why the CSI 1000 took a big hit today and it's just continuing to get pummeled. We're getting more promises Again, we're getting again a lack of details and I think the the response to it that I think is pretty telling in Futures because you've still got Chinese equities that are setting up a further weakness today. Yeah, and keep it mind that we're heading towards the big weeklong holiday in China when people you know supposedly go back to their home, uh, towns and there's uh, party celebrations and the like.

But the market has been absolutely hammered. Uh, whatever kind of stimulus or talk of stimulus or jaw boning that was done earlier last week, uh, fizzled out by Friday and there was chaotic trading. The CSI 300 was down 3.4% So we've seen monthly losses now for 6 months in a row6 trillion doar worth of market capitalization wiped out. People are getting quite skittish if they haven't already been uh over the last 6 months obviously.

Now the Csrc, the Securities regulator out with a statement yesterday. not surprising. giv the route on Friday essentially saying and I will paraphrase their statement policy makers vowing Sunday to prevent abnormal fluctuations, but again, it didn't say how necessarily it would do that other than it would give or provide more medium and long-term funds into the market. and then the third Point Crackdown on illegal activities.

Didn't mention which of those illegal activities they were talking about except malicious Short Selling and insider trading. but again, it's short on specifics and uh, again, how much this will Prof the market? We're not sure. Lot of scuttle butt. high level overview commentary that does nothing for a stock stabilization fund.

How big would that be? Where would it come from? Where Offshore S soes providing uh, you know, liquidity into the market? But right now, uh, you know many analysts say it needs some sort of jolt. We'll see how it plays out. I Personally think things are going to get quite a bit worse before they get better. The numbers are truly staggering.

Some $7 trillion has been erased from the value of equities in China and Hong Kong since their peaks in early 2021 as a long running property slump. Weak economic data in tensions with the US rattle investors, so we know what's been going on in their ghost towns that hasn't been good. Their real estate sector in shambles. their Shadow banking obviously an issue from their recently week economic data their GDP report it missed.

technically it was a slight Miss but a Miss nonetheless. And then from there, it doesn't really call it out in this particular article, But I think there's just a lot more discontent with the people and how things are run, so that's not going to be good either. Margin calls and force liquidation faced by shareholders are emerging as a key risk. After the latest pledge of support provided few details on how authorities will stem the debacle.

The medium cap and small caps are under intense selling pressure as some investors have been betting on more national team support for the big cap. So basically they're kind of taking a page out of the US book. here. when hits the fan, the government steps in and saves the big guys.

So that's why what you see the CSI 1000 taking a large hit and continuing to fall as the CSI 100 just a large caps was actually green. So it's kind of with our own banking crisis. they're like, well, if we save the big guys, maybe that that's enough. While the small and the medium guys are like left out to drive, the latest slump has led to Fresh concerns over a wave of margin calls as the value of shares put down as collateral shrinks the fears that investors failing to top up their margin trading accounts may be forced to liquidate their position.

The China Securities Regulatory Commission Pledge on Sunday to prevent abnormal fluctuations, saying it would guide more medium and long-term funds into the market and crack down on illegal activities including malicious Short Selling and insider trading shouldn't you be doing that anyway? And reality, this reminds me of what I've been preaching now for a couple months. I Get it: The US is the number one economy, the number one stock market, and in the next couple decades I truly believe it will remain there. Number two is China And with all these issues with some population concerns, China is on the way down. I Truly believe that? I Get it.

If you listen to some of the current politicians, the presidential hopefuls, they'll tell you and they'll scream in your face that China is our number one threat, our number one issue, and as of now, it's number two in terms of global economic power. I Don't think it's going to remain there if you look past two I think it's then Japan or Germany I might be flipping those and then after that's India I Think what's going to happen is we're actually going to end up seeing China continue to drop and then India pick up from four, probably jump to two and then maybe Germany and Japan stay where they are. But I wouldn't be surprised if a South American country starts to really pick up. Maybe perhaps something like Brazil but if you just read the writing on the walls for a multi-year trend, Here China is clearly not trending in a bullish, powerful position.

it's it's just simply not. And another sign of how exasperated some investors have become. Thousands flock to social media accounts of the US Embassy in Beijing to vent their frustrations over the economy and slumping share prices. China's internet users often struggle to find a venue to air grievances about the economy or government performance, because if they do, they don't show up to work the next day with official account of state agencies or media, usually either disabling the comment function or only showing selected feedback whether or not today.

Marx The floor to Chinese Equities is yet to be seen, but it sure feels as though we're bumping along the bottom as policy makers have signaled they no longer want to see any further declines. I Don't buy that. Maybe I mean for anyone involved in it I Hope the pain is over, but usually when things like this happen, pain begets pain. So I don't know if the Pain's going to be stopping anytime soon.

Definitely something to pay attention to because this. I Don't think this is an isolated story. When you hear this of craziness in such a powerful economy, it's hard to believe that like oh, it's a little story and it'll stay siloed and then it won't have any repercussions. Something to pay attention to here cuz I Have a spidey sense that this particular narrative is going to be important in the coming weeks and months, so definitely be paying attention.