In what analysts are describing as an unprecedented economic situation, China’s stock indexes are currently tumbling into a free fall, with panic taking the place of the brash confidence that, until last month, led these markets to rapidly develop into an unsustainable bubble.
That bubble appears to have now burst: by early afternoon local time on Friday, the Shanghai Composite Index had fallen 3.25 percent to an anemic 3,785.57 points; in the three weeks since it reached a seven-year high, it has lost thirty percent of its value.
Monetary authorities in Beijing are currently grasping for straws to remedy the situation, but numerous market interventions, including the fourth cut in interest rates since November, have failed to keep investors from frantically selling their Chinese stocks.
The turbulent situation is not yet catastrophic, but it illuminates the greater volatilities of China’s fraught existential dynamic: between an autocratic Communist government and…
Voir l’article original 159 mots de plus