With the huge numbers of risk-unaware masses flooding their money into the Chinese stock market and the resultant extraordinary P/E's, China may be due for a massive correction.
How will the brittle authoritarian regime ruling from Beijing handle this? Will the centres of power panic and resort to high-handed interventions, or will they choose to remain quiet and mutely ride out any discontent from the masses? How will the rest of the world be affected?
1 comment:
Sure. there is no doubt the stock market in China is headed for a crash. But the government there will try to make it not happen before the olympics in 2008. After the olympics, anything can happen. Incidently, that happens to be the time around which the us presidential elections are also staled to take place. It looks like 2008 is going to be intetresting year to watch out for.
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