SNS: China’s Economic Collapse

SNS Subscriber Edition
Volume 21, Issue 1
Week of January 4, 2016

In This Issue

Feature: China’s Economic Collapse

• Equity Markets
• The PMI
• Measuring the Flows
• Inflation
• Summary

Quotes of the Week

Takeout Window

• Crude-Oil Stockpiles

Upgrades & Numbers

• A New Electro-Optical Chip Design

Ethermail

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“No one has visibility on this issue; it’s like you’re driving through the fog, so you just have to go a bit slower.” – Wall Street analyst, on National Public Radio, Monday morning, Jan. 4.

“China’s economy is still growing at a rate that would be the envy of most countries, but that growth has been slowing more rapidly than many anticipated.” – NPR reporter Frank Langfitt; ibid.

We first warned our members of the China Collapse on May 28, 2015. We expanded the warning in a Special Alert (“SNS Special Alert: Chinese and US Markets,” 7/8/15) just a few days before the Chinese equity markets went into free fall:

We followed that warning with a second Special Alert (“SNS Special Alert: Chinese and US Markets III,” 8/24/15).

On Sept. 23, 2015, we published a complete issue on the problem (“SNS: The China Short”), addressing the question of how company executives and investors can protect themselves from the collapse.

We should, at this stage, be careful to discern between what is happening with equity markets and the domestic economy inside China and what is happening in the same categories outside of China.