Measuring China’s Progress

As China makes its gradual transition from communism to capitalism and from poverty to prosperity, it can be easy to lose track of how much progress China has made.  The…

The End of Teflon Xi

Will China’s stock market turmoil dent Xi’s stellar reputation in China? President Xi Jinping is actually a fairly popular leader, with people being drawn to his strong stands relative to corruption,…

Note to China: More Debt and Less Market is a Bad Idea

China stock market characterized by leverage and non-market measures Increasingly it seems this will be China’s approach to its entire economy Fueled largely by leverage (buying on margin increased 500%),…

Bulls & Bears: China’s Stock Market

We do think that the decisive factors in the Chinese market are the explosion in leverage (margin buying) that occurred on the way up and the extremely high PE valuations.  Any market built on such conditions will surely fall.  How far is hard to say, but continued rise looks very difficult and unstable.  As to the economic fall-out, the short term impact looks to be minimal.  But China has greater economic challenges.