China Stock Market Meltdown

China stock market meltdown, screams the headlines. True that Shanghai Composite went down by a gut-wrenching 32% in 18 days despite China’s best efforts to stem the selling.

Let us read this news again keeping in perspective that China market more than doubled in last one year.
Do you think that China economy more than doubled in last one year. NO. In fact it grew at the least pace of 7% in 25 years.

Now it is all paper profit unless you book it. So some people booked it and it was a big sell off causing the market to crash.

People are saying that it is going to affect China economy. I just fail to understand how.
It is a zero sum game, this stock market. Some one gains an equal amount some one looses. The money stays in the system.

How the stock market gyrations affect a country’s economy, I don’t know.

3 thoughts on “China Stock Market Meltdown”

  1. Hi there, just became alert to your blog through Google, and found that it’s truly informative.
    I’m going to watch out for brussels. I’ll be grateful if you continue this in future.
    Lots of people will be benefited from your writing. Cheers!

  2. Greetings from Los angeles! I’m bored to tears at work so I decided to browse your blog
    on my iphone during lunch break. I really like the knowledge you
    present here and can’t wait to take a look when I get home.
    I’m shocked at how quick your blog loaded on my mobile ..
    I’m not even using WIFI, just 3G .. Anyhow, superb blog!

Leave a Reply

Your email address will not be published. Required fields are marked *