The new leadership team selected by Chinese President Xi Jinping at the 20th National Congress of the Communist Party of China failed to impress financial markets at home and abroad.

In the week following the announcement of Xi’s new team, Hong Kong’s stock market declined by 8.3% and the Shanghai Composite Index, China’s largest stock exchange, dropped 4%, despite the Chinese government’s intervention to prop up prices. U.S.-listed Chinese stocks plunged by 15%.

Investors have good reason to worry. Though financial markets had already priced in Xi’s third term, investors had hoped that he would appoint a team of more moderate, experienced officials capable of putting pragmatism above politics. Instead, Xi packed the Politburo and its Standing Committee with loyal allies and proteges.