China's stock market is down almost one-third since June 12. Yeah, that's a lot in a short time. Today Chinese brokerage houses announced that they will buy stock to try to stabilize the market. A similar action worked in Hong Kong in the past. Yeah, stock markets are volatile generally. China's stock market has still outperformed the U.S. market by over 12% in 2015.
There had been a concern, this is a few years ago now, that China's economic miracle, the longest continually sustained growth in the history of the whole earth, was too good to be true, there were concerns about transparency, there were empty mag-lev trains, i.e. public works projects that seemed to some to be meeting no public need, that were being built only to continue the boom artificially.
I hope that isn't happening today. There are still concerns today about how the Chinese people, completely unaccustomed to capitalist things like "recessions," will react to a capitalist thing like a recession. And concerns about how it is that they have never had the experience going on forty years.
There had been a concern, this is a few years ago now, that China's economic miracle, the longest continually sustained growth in the history of the whole earth, was too good to be true, there were concerns about transparency, there were empty mag-lev trains, i.e. public works projects that seemed to some to be meeting no public need, that were being built only to continue the boom artificially.
I hope that isn't happening today. There are still concerns today about how the Chinese people, completely unaccustomed to capitalist things like "recessions," will react to a capitalist thing like a recession. And concerns about how it is that they have never had the experience going on forty years.
