Communist Paper Editor blasts legacy of outgoing leaders.
Sept. 4 (South China Morning Post) — A senior editor of
Study Times ,a Communist Party mouthpiece, has launched a
blistering broadside at the country’s outgoing leaders, who are
about to step down in a once-a-decade shake-up, accusing them of
stalling long-overdue political reform and brewing a legitimacy
This is rather alarming. Such behaviour would have been unheard of 3 years back.
I wrote this some weeks back : China Crisis – Wishful Thinking.
It looks like things are coming to a head.
Shanghai Stock Index at lowest level since 2009.
HK listed Chinese banks suffering foreign bank selling out.
This comes along with headlines of political jostling in Beijing with a President Hu aide sidelined amidst a scandalous Ferrari crash in March this year. Not to be confused with the Ferrari crash of Singapore in May this year, also involving a Chinese national.
Do you think they are in control ??
With defiance showing up in acts of suicide, such as one of an editor of a communist paper, the world gets a glimpse of the China behind the facade we all see.
In an interview he gave before his death, Xu Huaiqian was quoted as saying: “My pain is I dare to think, but I don’t dare to speak out; if I dare to speak out, I don’t dare to write it down, and if I dare to write it down, there is no place to publish.
For all those economists expecting any easing on a large scale to save the SHCOMP, I think this is the best you can hold out for.
Xinhua : China approves 25 urban rail projects to boost economy 5 Sep 2012
The 18th National Congress of the Communist Party of China will be held in October this year. It is also where the wealthiest Chinese will be.
So my 2 cents worth, I would not touch China until the rebalance of power is complete. And then we can hope for some sweeteners to shut the people up. Sweeteners like an easing.
Attached, chart of SHCOMP and UST 10Y. It is looking a little precarious. Sell 10Y UST ? Hold on SHCOMP.