Why have we focused so much attention on China as of late? First because the Chinese economy is huge and hugely important to the overall world economy. Second because China is, as we say, The Ultimate Crony Capitalist State. It is an economy built on fiat. It is an economy built on commands from on high. It is an economy with massive potential, potential which to some degree has been actualized, but which is undermined by cronyism and central planning.
China in many respects is a cautionary tale.
China will continue to grow. It will continue its rise as a great power. But it is increasingly obvious that the Chinese model is not one to emulate.
“When you see a straight line buying pattern in the last 45 minutes, that’s usually the national team supporting the market,” said Michelle Leung, chief executive officer of Xingtai Capital Management Ltd. in Hong Kong. “When you track market opens or you track outstanding margin balance, we could see the bulk of retail investors selling.”