According to some observers, the new stock exchange board announced by President Xi Jinping last Thursday, for Small and Medium Enterprises (smaller than 500 workers), is meant for “insulating China from an increasingly likely global financial crisis by eliminating dependence on foreign financial markets,” according to Macleod Finance, with similar sentiments from other observers. (https://twitter.com/MacleodFinance/status/1435494027391033345)
At the same time, George Soros and others are accusing China of provoking a systemic crisis with its refusal to bail out real estate giant Evergrande. The offshore-based Evergrande has 100 billion in foreign debt, and “contagion” is feared. Moody’s has cut Evergrande’s rating from Caa1 to Ca, one step from default. Half of the offshore debt of the Chinese corporation is owned by foreign investors.
