- As the Greek debt drama plays itself out one 60-euro withdrawal at a time, some economic observers are saying the world is paying attention to the wrong crisis.
That's because in the space of three weeks, China’s Shanghai Composite stock index has lost nearly 30 per cent of its value, wiping out some $2.3 trillion U.S. in wealth. As Bloomberg News put it, that’s a loss of $1 billion for every minute of trading. Regulators have halted trading in more than 700 listed companies, and at least two dozen IPOs have been cancelled.
well shit.
I seriously don't understand what the thought process the Chinese government has to prop up this stock bubble. Perhaps the hope is utilizing government control of media outlets to reduce the fear of the Chinese public will prevent a mass sell off. Its hard to maintain stock market highs that aren't justified by the fundamentals imo.
I think it just speaks to the mindset of the Chinese government in general. The whole thing is built on centralized control, and they seem to hold the belief that they can "control" markets in the same way they control politics etc. I agree that it's odd and frankly stupid, but I don't consider it surprising.