China PMI Causes Global Asset Sell-Off!

China's government data released last night indicated that the manufacturing sector there is contracting rapidly. This caused all sorts of assets, including all physical commodities and equities, to sell off heavily today. China has continued to report high GDP growth, and this report suggests that there is a likelihood of a hard landing in China, and that will in turn crush demand for many commodities.

I had read over the weekend news reports that in China, manufacturing company CEOs are disappearing without a trace. In China, bad performance may not only result in poor bonuses. Because of the legal loopholes and often onerous government oversight, poor performance may result in being imprisoned or even worse. Thus, some manufacturing executives, rather than run the risk of terrible consequences, are choosing to run or hide instead.