The market boom and bust was a short term spectacle. The rise was parabolic as novice retail investors used high margin positions to leverage early gains. Then of course, the trades were unwound the damage was severe. The ensuing collapse had spillover to other global markets.
Last night 1,500 China stocks were halted in trading with many limit down. The previous intervention by the Chinese government into markets only made matters worse. The government yesterday went so far as to urge investors to “rat-out” those selling. Short sellers were threatened with arrest.
Of perhaps greater importance is the China economy is believed by most to be in a sharp decline, and of course this threatens an already weakening global economy, including the