Xi Jinping's third term drives investors away from China

On Sunday (18), Xi presented a team composed entirely of supporters, demonstrating the desire for absolute control of power. Foreign investors fear the strengthening of measures considered negative for the private sector and consumption, ranging from the Covid Zero policy to the regulation of technology companies.

Technology stocks were the ones that fell the most: Alibaba fell %, Tencent ,4% and Meituan %. After a 9.7% drop on Monday, the Hang Seng Tech index rose 4% on Tuesday (20) at noon (local time).

Not even the announcement of third quarter growth of 3.9% – slightly above economists’ expectations – was enough to reverse the situation.

“ This reflects post-convention disappointment over the leadership changes. It seems that there are not people with much experience in managing the economy. But I think it’s a market overreaction,” said Dan Wang, chief China economist at Hong Kong-based Hang Seng Bank.