This is actually a positive development in the long run. A few years ago my father, who lives and invests in China, boiled down the basic investment strategy in

This is actually a positive development in the long run. A few years ago my father, who lives and invests in China, boiled down the basic investment strategy in China to: invest in big companies because the government will always bail them out. If that's what everyone believed then you can see how some very poor decisions can be made and debts can balloon without end. Disasters like these will remind Chinese investors that there are risks. There are no free lunches and be prudent about your investments. This is part of the process of modernizing the Chinese economy.