China's government is more concerned about stopping the spread of Covid-19 than spurring the economy back to life.
The US may very well escape recession this year, putting it off until early next year. Other global economies may not be so lucky.
Alibaba and JD.com climbed and led the way in Hong Kong after Chinese officials pledged to soon "compete the special rectification" to the tech sector.
Let's recap some of the main worries behind the selloff. Unfortunately, I think the trading action gets worse before it gets better.
The firm has been hurt and continues to be hurt by the effects of the pandemic.
The CSI 300 plunged to its lowest level in two years as residents of the Chinese capital stripped grocery store shelves bare amid lockdown fears.
The market is trying to discount all the negatives out there, and it is a process that takes some time.
One positive takeaway last week was the very low trading volume for Nasdaq-listed stocks in aggregate and for constituent names of the Nasdaq Composite.
China's economy grew 4.8% in Q1, but many China watchers say the numbers are getting increasingly unreliable.
The possibility of a recession in the quarters ahead cannot be dismissed.