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China in full crisis, the proof is in the markets. What happens today?

The stock and bond markets in China are giving a clear signal to politicians: the crisis is ongoing and stronger stimulus measures are needed to restore investor confidence.
The session on Tuesday 30 January was marked by losses, driven by a sharp sell-off in Chinese indices.
The Hang Seng China Enterprises, a gauge of Chinese stocks listed in Hong Kong, fell as much as 2.7% and stood out as the worst performer in Asia.
The Shanghai and Shenzhen indices ended trading with drops of 1.83% and 2.37% respectively.
China's 10-year government bond yield fell to its lowest level in 20 years.
Investors are now expecting further policy easing to defend stock markets after Beijing announced a cut to bank reserves last week.
The fresh decline in stocks in China shows that traders are currently more likely to sell for potential gains, unless Beijing takes bolder steps.
There is a lot of anticipation about any new economic support decisions from the dragon.
Meanwhile, the sell-off in Chinese stocks doesn't appear to be slowing down.
read also Evergrande in liquidation, the real estate meltdown continues in China China is a problem and drags Asia into the red Hong Kong shares fell by about 2%, while those of mainland China slipped into the red for the third day .
The impact of China Evergrande Group's liquidation order on Monday, January 29, also pushed the Bloomberg Chinese Developers Index down more than 4%.
“Valuations are clearly low, but for good reasons, including the damage to the tech and real estate sectors that China itself has done,” said Kieran Calder, head of equity research for Asia at Union Bancaire Privee.
“Our view is that investor confidence will not return until the real estate sector has finally emerged from the crisis.
The ongoing news flow confirms that the real estate crisis is still strong and not easy to resolve." Beijing surprised the market last week by cutting the amount of cash banks must set aside as reserves, but the measures are "more monetary and more piecemeal," said Xin-Yao Ng, investment director for Asian equities at Abrdn Asia Ltd., adding “there is a need for large fiscal stimulus to boost confidence.” read also China grappling with deflation: what happens beyond the Wall Hong Kong benchmarks today also suffered the fall of BYD Co.
after the electric car giant missed its earnings forecasts.
The onshore CSI 300 index also lost more than 1%.
Foreign investors are selling off heavily and dumped nearly 2 billion yuan ($279 million) of mainland Chinese stocks during the midday trading break.
The fragility of China's economy deepened this week as the liquidation of real estate firm China Evergrande Group – once the nation's largest – intensified concerns about the property sector.
Investors see little reason to be optimistic as headline earnings disappoint, while geopolitical risks re-emerge ahead of the US presidential election later this year.
Finally, sentiment towards Chinese stocks in Hong Kong took a further hit as the city announced details of a planned national security law, a move that will have far-reaching implications for Hong Kong's international status.
Data arriving on Wednesday is likely to show that China's manufacturing sector remained in contraction for a fourth consecutive month in January, reinforcing the economy's dismal health.
read also USA-China, who wins in the economic war? The answer in 3 graphs

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