How Chinese President Xi Jinping Shakes Global ETF Market

It seems Chinese President Xi Jinping has outdone investment manager Cathie Wood in terms of value destruction. As Ark Invest faced a dramatic fall, China's bear market, influenced by Xi's policies, caused even greater losses for US investors. The fallout from China's stock market reversal has led to unprecedented ructions in the global ETF market, with ETF mechanisms breaking down in China. The recent equity sell-off in China has been driven by concerns over weak economic growth, housing market slump, US sanctions, and conflict over Taiwan. The impact of state intervention in the Chinese stock market is quite significant, with the 'national team' injecting massive funds to boost domestic equity ETFs. Despite this, doubts remain about the sustainability of China's market support. The CCP's actions are specifically targeted at priority sectors such as renewables and semiconductor manufacturing. However, some believe that resolving the underlying economic problems is essential for a meaningful market rebound. It's evident that Xi's policies have significantly impacted the global ETF market and raised concerns about China's economic stability.