China Is Permanently Damaging Its Marketplace
Talk of war, stagflation and rationing is eroding the country’s confidence and affecting the dynamics of its financial industry
Military exercise in Taiwan
Photographer: NurPhoto/NurPhotoIf a stock market is a mirror of a society’s state of mind, then the U.S. is feeling exuberant right now. But in China, it is all about trepidation. Investors there are worried the government is going to mess things up.
Both economies face the same set of problems: Supply chain disruptions, inflation pressures, the threat of rising interest rates. But the market dynamics couldn’t be more different. A new electric vehicle initiative from car rental firm Hertz Global Holdings Inc., which exited bankruptcy only a few months ago, added about $300 billion of market cap to Tesla Inc. That’s more than the entire worth of China’s biggest commercial bank, Industrial & Commercial Bank of China Ltd.