China is seemingly a series of paradoxes. Like Escher’s Relativity drawing.
Wall St. Journal – BEIJING—China’s economic expansion slowed to its weakest pace since the financial crisis, as top financial regulators launched an extraordinary coordinated effort to calm jittery investors.
The rate of growth in the third quarter dropped to 6.5%, falling short of market expectations, official statistics released Friday showed. Growth in industrial output and consumption weakened in the quarter, while exports held up despite the country’s bruising trade fight with the U.S.
Yes, in 2017, China had 3 times the GDP growth of the USA (if you believe China’s accounting!). And China has been growing at over 6.9% since 1990 EVERY YEAR.
Yet the Shanghai composite index remains at late 2006 levels.
Even though the Shangai Composite rose 4.1% overnight.
China’s Shanghai Composite Index surged 4.1 percent on Monday, extending Friday’s 2.6 percent gain, for its largest two-day rally since August 2015. Speculation of intervention from China’s “National Team” of state-backed funds together with verbal support from authorities lifted stocks from a four-year low on Friday and President Xi Jinping’s vow of “unwavering” support for the country’s private sector over the weekend helped fuel Monday’s gains.
Something is not right.