Chinese love to gamble – I hear that a lot. Is it true? I don’t know. But the Shanghai Stock Market gyrations could make you think that is the case.
Cannot see the point of a fast rising Shanghai market so I presume some Chinese and foreign money decided it was a good time for a China punt. Let’s get the market roaring as foreign money starts to be allowed in, push the index up and then sell into the wall of money chasing the rising market.
Seems that what has happened.
Take care my friends. I smell rats at work. If China veers too much towards an unmanaged capitalism it is going to be unable to maintain stability of 1.4 billion people. If a bad scenario unfurled then the situation in the Mediterranean would be a minor blip by comparison with Chinese seeking refuge.
There may be foreign money that wants to see a wild China market to enable speculations and even encourage the collapse of the single party state.
Reality is this is relatively minor, and China can cope with it. But be careful what you wish for – Chinese capitalism would not be a pretty sight