06 July 2015

Is The Big China Crash Happening Right Now?

The Shanghai index is firmly in bear market territory, down 28.6 per cent since the June peak, while the tech-heavy Shenzhen Composite has fallen 33.2 per cent.
From Marginal Revolution.

 The Great Depression in the United States and many other serious economic collapses have begun with a stock market crash. China's stock market is now collapsing, and this could mean that the depression class economic downturn that I have predicted that China will experience quite some time ago, is coming to pass.

 But, it remains to be seen if this is a leading indicator of a major economic downturn for the world's most populous nation, or merely a temporary stock market blip in a stock market that is much younger, much less central to the nation's economy, and relatively thinly capitalized compared to stock markets in more developed countries.

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