Chinese stocks are now underperforming US stocks by the most since 2001.
Meanwhile, China’s HY real estate index is down a massive 82% in just over 2 years.
This puts the index back down to 2008-levels.
Adding to this, Evergrande just filed Chapter 15 bankruptcy.
All while China just “unexpectedly” cut interest rates.
Is China is on the brink of a credit event?
China’s HY real estate index is down 82% and it’s barely marking headlines.
Their decision to suddenly and unexpectedly cut rates is no coincidence.
It was their biggest rate cut since 2020.
Wild times.
Follow us @KobeissiLetter for real time analysis as this develops. pic.twitter.com/HsmY8IdmI9
— The Kobeissi Letter (@KobeissiLetter) August 26, 2023