What Xi means by ‘disorderly capital’ is $2 trillion question for investors
SHANGHAI (BLOOMBERG) - If nothing else, Chinese President Xi Jinping is known for his pursuit of order. So how far the Chinese President's attack on the "disorderly expansion of capital" will go has emerged as a defining question for investors trying to navigate the country's wave of regulatory crackdowns. Since first appearing in a Politburo readout in December, the phrase has been employed by government agencies and researchers to explain actions against technology moguls, celebrities and private tutors that fueled a US$1.5 trillion (S$2 trillion) stock rout last month. The slogan, like "common prosperity", is among several Xi-isms feeding concerns that China is tilting away from free markets and back toward more ideologically driven centralised planning. Its meaning, however, is even more mysterious than its egalitarian-sounding cousin. The exact words "disorderly expansion of capital" have appeared only five times in documents directly connected with Mr Xi, according to a Bloomberg News review of nine years of the leader's speeches and meetings. All mentions came in the past 10 months. The phrase has appeared at least 38 times in the People's Daily newspaper, the Communist Part...
