Europe is currently preoccupied by Greece, but soon we may all be feeling the trauma of China’s small investorsThe Chinese stock market crash came to a juddering halt yesterday, after a nailbiting three weeks that left investors $3tn poorer. The halt came after an escalating series of interventions that culminated in the suspension of trading in more than half the listed companies and strict instructions not to sell that were issued to anyone the government controlled or could influence. It was an extraordinary reaction and left the market with a sense of a drama interrupted, not completed.As the weekend approached, investors and regulators were taking stock of the damage: the market is still 70% up on a year ago and the sky did not fall in. But international analysts have called the recovery a dead cat bounce – and the leadership’s reputation with its own people for sound management, along with the promise for international investors that the government was on track for overdue economic reforms, has suffered a serious blow. Continue reading...
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