Markets shocked by new Chinese administration

Concern has increased in the markets after the appointment of names close to President Xi Cingping to key posts in China’s new administration. The Yuan depreciated against the US dollar, while Chinese stock markets also declined.

While the Asian share started the new week with a mixed course, the developments in China were effective in this course. Chinese President Xi Jinping was elected leader for a historic third term in the elections that ended yesterday and announced the executive committee consisting of politicians close to him.

NAMES CLOSE TO SHI ON DUTY

The other members of the seven-member Standing Committee, Zhao Leji and Wang Huning, were also reinstated after being on the old committee, while Cai Qi, Ding Xuexiang and Li Shi were the new members of the committee.

The appointment of names close to Shi to key posts and the addition of zero Covid advocates to the Politburo Standing Committee suggest that Covid restrictions will reduce the chances of an early loosening, while on the other hand, there are also worries that Shi will strengthen his hand in anti-market policies.