The panic unleashed by the recent collapse of the Shanghai Stock Exchange demonstrates that on the markets "any negative surprise is emphasized, it touches overly exposed nerves, just touching them is enough to provoke rash reactions". This was stated by Alessandro Fugnoli, strategist of Kairos Partner, in an interview with Il Resto del Carlino.
“The Stock Exchange has no ties to the Chinese economy – continues Fugnoli – it has been used by the government in certain moments to give confidence, in others to stimulate individual wealth. This drop in the indices is very similar to that of August: with new rules introduced along the way, resulting from the political will not to precipitate things, which however are interpreted by the markets in a negative sense. The Beijing government would like to keep the losses in reasonable or rational terms”.
Fugnoli recalls that the Chinese Stock Exchange "has not only attracted 120 million small savers: there are also hedge funds, aggressive speculators who wanted to test the limit down, the automatic brake, triggering the chain reactions of collapses, newspaper headlines, of the planetary alarm, generating boomerang effects. The measures taken to reduce sales have actually increased them", but "the syndrome affecting the markets" has no basis in the real economy: "It is fueled by those who fan the flames, by those who speculate on rebates, no longer being able speculate on the increases”, concludes Fugnoli.
