China Stock Tumble Scarier Than Greek Debt Crisis – China Real Time Report – WSJ

China’s stock plunge is scarier than Greece, writes Morgan Stanley Investment Management’s Ruchir Sharma:

The continuing crisis is viewed, locally and globally, as a test of China’s control over the economy. The “Beijing put”—a perception that Chinese economy and markets are backstopped by the government—is under threat. That perception has underpinned the widespread belief that Chinese growth won’t fall much below 7%, because that is the government’s desired target and Beijing is omnipotent.

But if Beijing can’t stop the market’s tumble, there could be a sudden shift in the perception of exactly how far economic growth might fall under the weight of too much debt. If that floor crumbles and the Chinese economy spirals downward, it will make the drama surrounding Greece feel like a sideshow. China has been the largest contributor to global growth this decade; Greece’s economy is about the size as that of Bangladesh or Vietnam.

via China Stock Tumble Scarier Than Greek Debt Crisis – China Real Time Report – WSJ.

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One Comment to “China Stock Tumble Scarier Than Greek Debt Crisis – China Real Time Report – WSJ”

  1. China Stock Tumble Scarier Than Greek Debt Crisis – China Real Time Report–as stated above.

    The above news is not an easy reading.

    Not too long ago, China was associated with high productivity and higher GDP that most of countries in the western world can not even dream of. Up to very recently, the focus was on Greece!
    And now China….

    It is scarier, as its impact will be wider!

    I hope things improve–sooner!

    Like

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