SamuelRSmith on 08 July 2015
| Sharu said: Well, if you look at graphs you can see the obvious bubble on a chinese market was starting to grow a year ago. Now it is busting, which is normal. The real questions here are: 1. How will it result on REAL economy. You know, producing smth, not making money out of the air. 2. Who's losing money. 3 trillions loss is too huge for old chinese people savings. It should be some international money involved as well. |
1. Nobody knows the full extent yet. But shaken confidence in the PBoC, also means shaken confidence in the RMB and Chinese debt. Those things have severe impacts on the "real economy" (as, btw, does financial activity - insurance, pensions, and savings, are tied up in the financial markets in just about every country in the world).
2. Yeah, will be institutional money, both foreign and domestic. However, 20 million "novice investment" accounts were opened up by Chinese residents in the past year.
