LOCKED MI2 Trader: CNH

In contrast to the 2008 Olympics, which marked China’s triumphant ascension to economic superpower status, events since the start of the Winter Olympics have been inauspicious, to say the least. Not only is the Middle Kingdom grappling with weakening GDP and a precarious property market, but it now faces a massive acceleration in Covid, which, if Hong Kong is any guide, could get utterly out of control. And if that wasn’t enough, China has been placed in an untenable diplomatic situation by its best buddy Russia. This situation is finally forcing international equity investors to stare in the face the risk of a new Cold War and its potential to massively add to the pain in domestic equity markets.