What's ironic about the Chinese stock market is that it's incompatible with Beijing's controlled economy. Knowing this, we can see just how desperate the centra

What's ironic about the Chinese stock market is that it's incompatible with Beijing's controlled economy. Knowing this, we can see just how desperate the central leadership is getting with appearing to have control. The stock crash is particularly dangerous for Chinese leadership at a time when people are becoming fed up with the wealth gap. Wiping out the wealth of its citizens will have catastrophic results for the communist party. Attempts to distract the public with territorial disputes will continue and eventually lead to military conflict should the leadership feel threatened by social unrest. The mounting debt in China, corruption, social issues, stock crash is a perfect brewing for a pivotal change. Historically, such conditions have led to a military conflict, or invented threat to drum up nationalism. But none of this works if the people feel like they got robbed, which in this case, Chinese government has actively encouraged people to put their life savings into stock market and at high leverages where an enormous chunk of the population will become homeless overnight should the market crash.