Chinese President Xi Jinping had some rather interesting things to say about his nation's economy earlier today.
Here's an excerpt from a note sent to subscribers by Hedgeye CEO Keith McCullough in response:
"Our man Xi was being way too honest overnight admitting the Chinese economy faces “considerable downward pressure” right now. They didn’t like that in Shanghai, closing the index down -1% as EM Asia continues to trade terribly (Thailand -1.1%)."
As you can see there was "considerable pressure" on Shanghai Composite shares.
Here's the full quote from President Xi who was speaking at the annual Asia-Pacific Economic Cooperation meeting:
“The Chinese economy is still coping with a complicated internal and external environment, considerable downward pressure and the temporary pains of deep reforms,” Mr. Xi said. “The opportunities are unprecedented and the challenges are unprecedented.”
Investors are "coping" with their own "unprecedented challenges" as well. That of course is interpreting China's inherently suspect economic data. That's why Xi's candor here was so telling.