That the bubble has likely popped in Chinese equities.
$2 trillion - roughly 20%-25% - has been shaved off their markets in just two weeks or so. One of the largest, fastest stock market drops in world history in sheer dollar terms.
To put that in perspective, about 8%-10% of China's household wealth just disappeared in two weeks (80% or so of all investors in the market are individuals). The stock market run has been helping to bail out a lot of homeowners that had previously bet on the real estate market continuing to go up perpetually. If both crash at the same time, it's going to hammer China's fragile economy (that has shrinking across the board already: exports, imports, PMI, electricity usage).
$2 trillion - roughly 20%-25% - has been shaved off their markets in just two weeks or so. One of the largest, fastest stock market drops in world history in sheer dollar terms.
To put that in perspective, about 8%-10% of China's household wealth just disappeared in two weeks (80% or so of all investors in the market are individuals). The stock market run has been helping to bail out a lot of homeowners that had previously bet on the real estate market continuing to go up perpetually. If both crash at the same time, it's going to hammer China's fragile economy (that has shrinking across the board already: exports, imports, PMI, electricity usage).