Short sqeeze for Chinese stocks happening soon ? notification from Broker

[JSOP]

"Common Prosperity" is the term I was thinking of. CCP cannot be trusted but it's still something that should be paid attention to.

https://time.com/6095560/china-common-prosperity

"BEIJING, Sept 2 (Reuters) - President Xi Jinping has called for China to achieve "common prosperity", seeking to narrow a yawning wealth gap that threatens the country's economic ascent and the legitimacy of Communist Party rule.

"Common prosperity" as an idea is not new in China, but a sharp escalation in official rhetoric and a crackdown on excesses in industries including technology and private tuition has rattled investors in the world's second-largest economy.

Xi, poised to begin a third term in 2022, is turning towards inequality after concluding a campaign to eliminate absolute poverty, pledging to make "solid progress" towards common prosperity by 2035 and "basically achieve" the goal by 2050.

WHAT DOES 'COMMON PROSPERITY' MEAN?


"Common prosperity" was first mentioned in the 1950s by Mao Zedong, founding leader of what was then an impoverished country, and repeated in the 1980s by Deng Xiaoping, who modernised an economy devastated by the Cultural Revolution.

Deng said that allowing some people and regions to get rich first would speed up economic growth and help achieve the ultimate goal of common prosperity.

China became an economic powerhouse under a hybrid policy of "socialism with Chinese characteristics", but it also deepened inequality, especially between urban and rural areas, a divide that threatens social stability.

The push for common prosperity has encompassed policies ranging from curbing tax evasion and limits on the hours that tech sector employees can work to bans on for-profit tutoring in core school subjects and strict limits on the time minors can spend playing video games. read more


This year, Xi has signalled a heightened commitment to delivering common prosperity, emphasising it is not just an economic objective but core to the party's governing foundation.

Officials say that common prosperity is not egalitarianism.

A senior party official said last month that "common prosperity" does not mean "killing the rich to help the poor". read more

A pilot programme in Zhejiang province, one of China's wealthiest, is designed to narrow the income gap there by 2025.


HOW WILL IT BE ACHIEVED?

Chinese leaders have pledged to use taxation and other income redistribution levers to expand the proportion of middle-income citizens, boost incomes of the poor, "rationally adjust excessive incomes", and ban illegal incomes.

Beijing has explicitly encouraged high-income firms and individuals to contribute more to society via the so-called "third distribution", which refers to charity and donations.

Several tech industry heavyweights have announced major charitable donations and support for disaster relief efforts. Online gaming giant Tencent Holdings (0700.HK) has said it will spend 100 billion yuan ($15.47 billion) on common prosperity.


Long-discussed reforms such as implementing property and inheritance taxes to tackle the wealth gap could gain new impetus, but policy insiders believe such changes are years off.

A property tax has been discussed for years and two pilots have been implemented in Shanghai and Chongqing since 2011, but little progress has been made.

Other measures would include improving public services and social safety net.

WHAT WILL BE THE ECONOMIC IMPACT?


Chinese leaders are likely to tread cautiously so as not to derail a private sector that has been a vital engine of growth and jobs, analysts said.

The common prosperity goal may speed China's economic rebalancing towards consumption driven growth to reduce reliance on exports and investment, but policies could prove damaging to growth driven by the private sector, analysts say.



Increasing incomes and improved public services, especially in rural areas, would be positive for consumption, and a better social safety net would lower precautionary savings.

The effort supports Xi's "dual circulation" strategy for economic development, under which China aims to spur domestic demand, innovation and self-reliance, propelled by tensions with the United States.


($1 = 6.4622 Chinese yuan renminbi)

Reporting by Kevin Yao; Editing by Michael Perry"

https://time.com/6095560/china-common-prosperity

"Common Prosperity" is just an excuse. It's more like "CCP Prosperity". LOL CCP is really expropriating funds for itself imo. Honestly if it really wants to distribute the wealth around to even out the income gap, there are so many different ways, more effective and efficient ways to achieve that by creating initiatives to encourage the funds to be channeled around to different segments of society to benefit all the lower income levels without these crackdowns. All these crackdowns are just achieving one purpose and one purpose only, concentrating more funds and in turn more power in the hands of the CCP. None of these crackdown measures are ever going to result in any increase in wealth for the low or middle class. LOL

 

[vanzandt]

That train wreck must not have been in India.

.... it's nearly impossible to time these but they should explode upward at some point.

Ya know what I think is HUGE BUY right now?
I mean at the moment there's no light at the end of the proverbial tunnel.... but that's the best time to buy because it won't go much lower.

It's Vietnam.
Now I wrote this a year ago, and even though things have gotten worse over there, the VanEck etf was about $13. It's $19.50 now. 50% in a year is pretty damn good with an etf. And Stoney thinks he's a savant.
$VNM

Anyway, the real trick would be finding a pure play that we can buy.
Note I said "buy", not trade.
Vietnam's a keeper. I was right a year ago, and when they whip Covid.... pffff.... watch what happens.
-vz