Michael Pettis: China’s Stock Markets And Revisiting 2011 Predictions

China’s Stock Markets And Revisiting 2011 Predictions by Michael Pettis’ China Financial Market

I plan to post a new entry very soon but before doing so I wanted to say a few things about the stock markets, which continue to be insane (but not unexpectedly so) and then repost a blog entry that is nearly five years old. By the time I published my latest (July 17) blog entry Beijing had managed to stop the panic with the use of what I called “brute force”, by which I meant that there was never likely to be much impact from interest rate moves, regulatory changes, margin relaxation, and so on. This is because there had been such a remarkable...