The Chinese stock market is crashing hard. Over half of all the companies on the Shanghai Exchange have been suspended from trading. The government is directly intervening in the market and has failed to even slow the selloff.
The Chinese economy earlier this year became (according to some anyway) the largest economy in the world. Consider that.
I will also note – and please forgive me for doing so – that we (and we are not the only ones) have been warning our readers about the crony economy in China and its fundamental instability for quite a long time.
Shares are still up in China – by a lot – for the year. At this point traders can take some comfort in that I suppose. But right now it’s cold comfort indeed.