Earlier this week, when discussing the sheer collapse in Chinese stocks (which culminated with a suspension on short selling, usually the last step before the bottom falls out of the market), we showed that with the most recent rout, Chinese stocks are now unchanged for the past decade.
China flat for the past decade pic.twitter.com/MdJ1LGQvKV
— zerohedge (@zerohedge) January 18, 2024
This sparked several similar comparisons, with DB's Jim Reid writing in his Chart of the Day this morning (available to pro subscribers in the usual place) that "two landmarks were reached in the world’s two biggest economies": in the US, the Nasdaq 100 hit an all time high while China's Shanghai Composite closed at its lowest levels since May 2020 (and hit a level first seen in 2014).Reid notes that the Hang Seng is even a more fascinating market to look at for China risk, "as although we’re still around 4% from the low seen in October 2022, If we take that out, we have to go back to April 2009 for the last time it was this low."
