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by Boo_Randy

Will China be the first country where the central bankers lose control?

www.bloomberg.com/news/articles/2022-07-12/china-s-plunging-markets-flash-fresh-warning-signs-on-economy?sref=ibr3A0ff

Chinese financial markets are flashing warning signs that another round of Covid shutdowns could create more turmoil for the economy.

The Hang Seng China Enterprises Index of stocks has lost almost 9% since June 28 as a new Covid subvariant threatens to paralyze factories, dampen consumer spending and hurt construction activity. China’s yuan, meanwhile, is renewing losses against the dollar, with the onshore rate the weakest in a month. Credit stress is also intensifying as China Evergrande Group teeters near its first onshore default, after another developer’s $1 billion delinquency revived broader contagion fears. And iron ore prices have fallen to a seven-month low.

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