Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

The China market is pretty limited in reach; not many foreigners and not even many institutional investors; it is rife with insider trading and is pretty volatile. It is more like Macau than wall street. Still, dysfunctionalities in the Chinese economy that they were trying to hide with a stock market boom will now come in front and center, which will have some effect on the global economy. Especially in raw materials and energy, but even in some trade.

I'm quite worried about it personally.



The China market is pretty limited in reach; not many foreigners and not even many institutional investors

How much money do Chinese investors have invested outside of China? If they bought Chinese shares on margin, they may end up selling assets globally to cover.


It is really hard to convert RMB, so that is probably not a big problem. The RMB's non-convertibility helps a bit in that regard.


They own a lot of homes in the US and Canada but they usually pay cash.


And if you look at the growth in Apple iPhone business much of it is coming from China. (Read that yesterday somewhere).


Apple could take a hit for sure....they aren't going to sell as many gold watches as they planned.


Q3 financials showed iPhone revenue up 60% from the same 9 month period last year, with 80% overall revenue growth in China, 17% in EU, 19% in US. Chinese market is contributing $46bn in revenue compared to $72bn in the US, $40bn in Europe, and $11bn in Japan.




Consider applying for YC's Summer 2026 batch! Applications are open till May 4

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: