'Snowball' derivatives feed China's stock market avalanche

January 23, 2024--China's plunging stock market is leading to losses on billions of dollars worth of derivatives linked to the country's equity indexes, forcing a vicious cycle of selling in stocks and futures contracts as market participants manage their risks.

Stock markets in Hong Kong and in mainland China plunged on Monday, extending a long spell of weakness driven by an exit of foreign investors alarmed by China's wobbly economy and a lack of stimulus measures.

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China's Economy Has Not Peaked

January 7, 2025--Chinese policymakers should allow for a more market-driven allocation of land, money, and labor.
Summary
China's GDP is growing. Youth unemployment is down. And the property-market crisis is moderating. But the economy's dynamism is missing.

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