China Has Summoned Its Stock Market 'Guardian Angels'

China is intervening in its stock market. And similar instances have historically spelled a much friendlier era for investors... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] China Has Summoned Its Stock Market 'Guardian Angels' By Sean Michael Cummings, analyst, True Wealth --------------------------------------------------------------- The "Broker Butcher" has just claimed his 32nd victim... Banking veteran Wu Qing has long served the China Securities Regulatory Commission ("CSRC"). That's China's biggest stock regulatory agency. And it's where Wu earned his nickname – by enforcing the law to the fullest... In a previous position at the agency, he shut down 31 illegal brokerages in the mid-2000s – about a quarter of all Chinese trading companies at the time. But Wu's newest victim isn't a broker... And he's no lawbreaker, either. You see, in a surprise move earlier this month, Beijing dismissed the former chairman of the CSRC. And Wu took his place. The former CSRC head, Yi Huiman, presided over a tough period for Chinese stocks. Since his appointment in 2019, the Shanghai Stock Exchange has returned just 10%. For comparison, U.S. stocks have returned 88% in the same period. Worse, Chinese stocks have been falling for nearly three years... erasing more than a quarter of the Shanghai Stock Exchange's market cap. This crash has finally forced the government's hand. And calling in the Broker Butcher isn't the only step Beijing is taking to turn its stock market around. Its latest moves might seem heavy-handed... But we've seen these kinds of measures before, as I'll explain. And in those instances, it marked the beginning of a much friendlier era for investors in China. --------------------------------------------------------------- Recommended Links: [This Appeared Before the 2001 and 2008 Crashes – And Now It's Back]( Two Wall Street insiders are sounding the alarm about a trend NO ONE seems to be talking about. It's a phenomenon that has appeared before EVERY major market downturn – including the dot-com crash, the 2008 financial collapse, and the following recessions. But they say this very trend also leads to a tremendous opportunity in ONE corner of the market with the potential for triple-digit gains... and with way less risk. [Click here for the full details](. --------------------------------------------------------------- ['I Found the Answer to Retirement']( A subscriber from New York came forward with his unique story of how he retired early and worry-free WITHOUT stocks... thanks to ONE single idea that anyone can use. Now he sees 16%-plus annual returns with legal protections... and he NEVER has to worry about another market crash again. [Get the full story right here](. --------------------------------------------------------------- In the Chinese markets, it's 2015 all over again... That year, the Shanghai Stock Exchange Composite Index plunged 40% from June to August. The government didn't hold back. First, it cut interest rates. Then, it reduced regulation. It banned short selling. And finally, it started buying by proxy... Beijing poured cash into a network of government-owned brokerages and financial firms nicknamed the "national team." These state-owned companies went to work, buying stocks in huge volumes. By November 2015, the national team owned 6% of all mainland Chinese shares. It was a daring move. And it worked... eventually. Take a look... Chinese stocks saw a few months of additional downside. But they bottomed soon after the national team started buying. China's "guardian angels" swooped in... And ultimately, they set a floor under China's stock market. The national team has kept a low profile since 2015. Some of its members haven't bought equities publicly since then. But now, history is repeating itself... In October 2023, Central Huijin Investment (a member of the national team) bought stocks openly for the first time in eight years. It bought heavily, too – $68 million worth of bank stocks in a single day. And its investment won't stop there. As Huijin noted in a recent statement... We will continue to increase our holdings and expand our holdings to resolutely maintain the stable operations of the capital market. In other words, the guardian angels are back in the market. It's a material change from the recent status quo in Chinese stocks. And it could help prices find a bottom in the months to come. Now, I'm not saying you should load up on Chinese stocks today. This market is still in a downtrend. And in the past, it has taken months for the national team to work its magic. Still, Beijing is on a crusade to reform the Chinese stock exchange. History suggests that the bottom is close... So keep an eye on this market in the coming months. Good investing, Sean Michael Cummings Further Reading Investors couldn't dump biotech stocks fast enough in 2023. But toward the end of the year, the sector finally caught a break and surged higher. If the trend continues, this boom-and-bust space could see even bigger gains in the coming months... [Learn more here](. Gold has been hovering at record highs recently. But many investors are still ignoring the metal – and according to history, that's a mistake. Similar breakout periods have led to solid upside over the next year... [Read more here](. Market Notes HIGHS AND LOWS NEW HIGHS OF NOTE LAST WEEK Visa (V)... payment-processing giant JPMorgan Chase (JPM)... financial giant American Express (AXP)... financial giant Wells Fargo (WFC)... financial services Travelers (TRV)... insurance Brown & Brown (BRO)... insurance Cigna (CI)... health insurance Elevance Health (ELV)... health insurance Eli Lilly (LLY)... pharmaceuticals AbbVie (ABBV)... pharmaceuticals Workday (WDAY)... cloud-based software Intuit (INTU)... tax-prep software Airbnb (ABNB)... online vacation rentals Disney (DIS)... streaming and entertainment Netflix (NFLX)... video streaming Electronic Arts (EA)... video games Costco Wholesale (COST)... membership-only stores Stellantis (STLA)... automaker General Electric (GE)... manufacturing Ecolab (ECL)... sanitation technology NEW LOWS OF NOTE LAST WEEK AstraZeneca (AZN)... pharmaceuticals Gilead Sciences (GILD)... biotechnology Hormel Foods (HRL)... food products Avis Budget (CAR)... rental cars Mosaic (MOS)... fertilizer Newmont (NEM)... gold miner --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. 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