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The Los Angeles Times reporting about the first two days of trading this week in China[1] is also interesting for perspective on how the stock market in China i
by tokenadult 11y ago
The Los Angeles Times reporting about the first two days of trading this week in China[1] is also interesting for perspective on how the stock market in China influences the broader economy of China. The key idea is that the current situation, even WITH government intervention, is very likely to severely hurt the personal savings of a lot of households in a country with a strong tradition of personal savings. That could turn many well educated, high-earning people who were previous supporters of the Communist Party of China leadership of China into doubters about their government or even regime opponents.
The CNN report based on official media reports from China strongly suggests many economic upheaval from the current intervention in the stock market in China.[2] The most dynamic and innovative companies in China are those most likely to be unable to raise further investment funds.
[1] "It's a bumpy ride for China's stock market investors"
http://www.latimes.com/world/asia/la-fg-china-stock-market-20150707-story.html http://www.latimes.com/world/asia/la-fg-china-stock-market-2...
[2] "Nearly 25% of Chinese stocks have stopped trading"
http://money.cnn.com/2015/07/07/investing/china-stock-market-companies-stop-trading/ http://money.cnn.com/2015/07/07/investing/china-stock-market...