The order was not unexpected and it did not send “shockwaves through the country’s financial system” as claimed in some news reports. It accelerated the end of the rally, but that retreat was always going to happen as the index approached strong resistance levels.
Last week, I wrote that I was particularly excited about the prospects for China in 2024. Soon after, a Hong Kong court announced an order for property giant Evergrande Group to be broken up and liquidated.
This announcement does not affect my excitement, although it has provided new fodder for those who have been forecasting the collapse of China for the past 20 years. There were eight reasons for my excitement and four were discussed last week. I will discuss the remaining four in next week’s column because this week we need to look at the impact of the Evergrande order.
