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.

from Wash Park Prophet
via Denver News

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