Last Friday the Hong Kong, Shanghai, and Shenzhen stock exchanges closed down ~2% collectively. That's a pretty bad day.
Just before the close, the CCP released really bad economic data for July. New loans were down 89% and new housing loans were down 78% year-on-year. For a regime that goes out of its way to avoid bad news and paint a rosy picture this is devastating. It is thought that the only reason they released it is that they didn't think it could be covered up.
They also announced that the PRC M2 money supply grew by 10.7% year-on-year. M2 is the broadest measure of readily available funds. It includes cash, checking & savings accounts, and short term Certificates of Deposit, CDs.
Unlike the US economy which is consumption driven, the PRC economy is investment driven. That people aren't taking out loans while the CCP is inflating the money supply is VERY bad.
Now add in that a large number of Chinese high-net-worth individuals started panic selling from the moment the markets opened. This was hours before the bad economic reports were released. They're not high-net-worth individuals for being slow on the uptake.
There is more going on with the flooding in Hebei province, which surrounds Beijing, and its relationship to the drought of the past several years but I am tired of typing for now.
WWG1WGA
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)