China's stock market is in turmoil as the Hansang index drops 6.4% amid Xi Jinping's third term. Concerns rise over tech regulations and economic stability. What are your thoughts on the future? #ChinaMarket #XiJinping #StockMarketUpdate #EconomicNews #Investing #FinancialTrends #TechRegulations

Want to give you an update on China because the stock market is crashing over there Let me show you what happened on Monday. So here's what's going on the Hansang index Which is like the S&P here in the US fell by 6.4% on Monday alone This is the biggest one day drop in over a decade. So it's been pretty brutal the other markets in China They took a dive as well the Hansang index is down nearly 35% this year and more pain is expected Foreign investors are rushing to get their money out of China. They're calling it an Exodus So look at the billions and daily outflows just over the past few days Okay, so that's the situation now. Let me tell you why this is happening. What's going on? This past weekend Xi Jinping became president of China for a third term. So congrats to Xi In China, you're only allowed to be president for two terms However, Xi Jinping thought that he thought that that was a silly rule. So he got rid of it in 2018 She's got another term and he now remains in power for another five years On Sunday Xi Jinping told the people of China they're on a journey to prosper as a modern socialist country Xi lean on his vision of common prosperity and an expansion of state-owned enterprises So basically, it was a nerve-wracking speech for all privately-owned businesses and all industries Xi solidified his power by electing four new appointments to the seven-person decision-making body for the country The elected officials are not pro-business. They're pro Xi Jinping So they're going to do whatever he says so Xi now has a complete monopoly of unquestionable power So any chance of checks and balances in China died this weekend. So nobody's going to challenge Xi or question his policies Now Xi Jinping has a history of being unfriendly towards tech companies in China She's been coming up with stricter policies and regulatory restrictions that are harmful to Chinese tech So Chinese tech companies are complaining that this has been suppressing their growth But the companies obviously have I mean they have no choice but to comply non-compliance results in expensive violation fees like the $2.8 billion fine that Ali Baba got hit with last year So it's basically like having an angry boss just breathing down your neck at all times and if you if you do anything to upset the boss Then you're going to get penalized big time So when she got his third term the financial markets in China. They didn't like this and they reacted poorly The Han saying index fell 6.4% in one day and the Han saying tech index fell by 9.7% Ali Baba group by do JD they were down more than 10% New Oriental education and tech fell by 20% So it was a blood bath with Xi Jinping in power for another term and basically known to speak up against him Private enterprises are concerned that Xi's policies will continue to slow Chinese growth in 2023 Foreign investors rushed to get their money out of the country There was a net outflow of $2.5 billion on Monday alone This is the biggest one-day outflow since people started tracking that data eight years ago Other policies by Xi that will remain in effect include the zero COVID policy So this is unsurprisingly expected to hurt the Chinese economy It is expected that she will keep the zero COVID policy in place for all of next year If cases start to pop up in whatever city then that city will lock down However, they're not calling it lockdowns. They're calling it at-home stillness and the Chinese government is giving orders to stop all unnecessary movements and I want to point this out Instead of calling it a zero-COVID policy, it's now changed to become a dynamic Zero-COVID policy. The Chinese government is saying that this new policy. It's more scientific and more precise This new and more advanced lockdown policy is Superior to the old one because with the dynamic policy the government can respond more dynamically depending on the situation so if that sounds vague and