It's not surprising at all. There have been reports of construction companies rebranding themselves as tech companies and doing a public offerings at P/E ratios that would make the hucksters of Silicon Valley circa 1999 blush. It will be interesting to see how it affects the rest of the world. That's the unpredictable part.
The GP talked about how it would affect the rest of the world and P responded to that. It wasn't any sort of discount on the suffering many Chinese persons might feel if significant financial loss is incurred through a dramatic correction of the market.
Your comment makes me wonder how stock ownership is distributed amongst the Chinese population. Are these losses borne mostly by wealthy speculators, or are retirement funds and small investors caught up in this? An index fund is an unsophisticated type of hedge, but it doesn't work very well if there's widespread accounting corruption.
