Investors Vote ‘No’ on China’s Xi

Markets retreat because Xi’s third term reminds them too much of Mao’s economics

Chinese leader Xi Jinping attends the meeting between members of the Standing Committee of the Political Bureau of the 20th CCP Central Committee and Chinese and foreign journalists at The Great Hall of People in Beijing on Oct. 23, 2022. Lintao Zhang/Getty Images

Commentary

Financial markets have shown disapproval of Xi Jinping’s success in securing a third term as China’s leader. Stocks, bonds, and China’s currency, the yuan, all fell with the close of the Party Congress and have more or less stayed down. The reaction is certainly understandable. For some time now, Xi has shown a penchant for policies that can only be described as anti-growth. His continuation in power can only mean more of the same.