Markets React Badly to CCP Congress
News Analysis
The reshuffle of the Chinese Communist Party (CCP) leadership and Xi’s speech to the 20th party congress in China has spooked investors, compounding an already suffering economy with no relief in sight.
On Oct. 24, markets reacted to the closing of the CCP’s 20th National Party Congress. Foreign investors sold $2.5 billion of Chinese stocks through Hong Kong, resulting the greatest losses since 2008. At the same time, the yuan hit a 14-year low, breaking 7.3 to the dollar. The Hong Kong’s Hang Seng stock market index fell by more than 6 percent, while in the United States, the Golden Dragon index of Chinese companies listed on Nasdaq fell by 14 percent and lost $93 billion in value. Both the Shanghai Composite and the Shenzhen Component indexes lost about 2 percent, while the China CSI 300 was down 2.93 percent….