Chinese Stocks React Negatively to Xi Jinping’s Third Term

News Analysis
On the eve of the Chinese Communist Party’s (CCP) rubber stamp conferences that kicked off on March 3, Chinese A-shares instantly surged, fell in successive days, then hit a one-month low on March 10, the day Xi Jinping was announced as leader of communist China for a third term.
On March 10, Shanghai Stock Exchange Composite Index (SSE Composite Index) and Shenzhen Stock Exchange Component Index (SZSE Component Index) plunged 1.40 percent and 1.19 percent to close at 3,230.08 points and 11,442.54 points, respectively, while the Growth Enterprise Index (GEM Index) closed at 2,370.36 points, down by 0.10 percent.
Hong Kong stocks also plummeted after March 6, and like A-shares, touched the bottom on March 10. The Hang Seng Index of Hong Kong stocks tumbled 605.82 points, or 3.04 percent, to close at 19,319.92 points, among which Hang Seng China Enterprises Index (H-shares Index) and Hang Seng Technology Index fell 3.06 percent and 3.78 percent, respectively….