Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Wednesday, January 24th, and today we are talking about the macro,

specifically some crazy things going on in China. Before we get into that, however, if you

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bit.ly slash breakdown pod. Hello friends. Today we are doing one of my absolute favorite type of shows,

which is where we get to dive into bigger macro topics. And the focus today is China.

Now, some of you may have been paying attention to this, but for those of you who haven't,

there has been some serious weakness spreading throughout the Chinese financial economy.

And because of that, authorities are starting to consider forceful steps to right the ship.

So to get a sense of what's been going on, the CSI 300, which is a cap-weighted average of

the 300 largest Chinese stocks, has been in basically down-only mode for

most of the past year, and this week reached a five-year low. This sell-off has become particularly

bad over recent months, with the 12% drop since the beginning of October, and a 5% decline so

far this month. In total, $6 trillion has been wiped out from the market value of Chinese and Hong Kong stocks since

their peak back in 2021. Now, policymakers are seeking then to mobilize $278 billion as part of a

stabilization fund to buy onshore shares. These funds will be sourced mainly from offshore

accounts held by Chinese state-owned enterprises. 42y-two billion in onshore funds are also

earmarked for the stabilization effort. Bloomberg confirmed these numbers through an anonymous

source close to the subject. Now, rumors of the massive intervention pushed Chinese stocks trading

...