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2015/09/23

China's Crackdown Is a Game Changer

Investment U Special Opportunities
Investment U Special Opportunities
 
Wednesday, September 23, 2015
 

China's Crackdown Is a
Game Changer

 
 
China's leaders aren't sitting on their hands. They're moving fast to stimulate the economy... and get their stock market surging again.
 
They've created an easy target for investors looking for quick profits.
 
In an incredible move, Chinese authorities have seized around $157 billion of unspent local budgets. In other words, this is money the central government handed out to local governments to spend on new projects... that those governments refused to spend.
 
The total amount of unspent cash is equal to about 6% of China's projected total government spending for 2015.
 
But why did local governments refuse to spend the money? Authorities are cracking down on corruption. Pity the poor bureaucrat who goes on a spending spree in that environment.
 
The money that was confiscated will now be forced into the economy and spent on other investments. The message to local governments is "use it or lose it." And that should be gasoline for a potential burst of speed in China's economy.
 
Need more proof officials are serious about reigniting Chinese stocks? An announcement just last Thursday fingered Zhang Yujun, the assistant chairman of China's Securities Regulator Commission, for suspected "severe violation of discipline."
 
Translation: fraud.
 
Police have also placed top officials from Citic Securities (the biggest brokerage on the mainland) into custody on suspicions of insider trading. There is speculation that more arrests are coming as part of the probe.
 
Let's face it, officials had to take action to restore confidence in the nation's stock market since its recent nosedive and after typical government intervention failed.
 
But I think this is merely the tip of the iceberg. It's just the start of a huge opportunity for investors looking for a quick, big win.
 
That's why I've created a special report if you want to get the raw details on what's behind China's wild action and, more importantly, learn exactly how you could profit from it.
 
The report's name says it all: "Slay the Dragon: Four Ways to Play China's Wild Market."
 
 
My take: China bears are about to get rolled up and turned into carpets. And once China gets back in the groove, that should be a boost of confidence for the global economy... and for the global equity markets. Check out the report details here.
 
All the best,
 
Sean
 

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