so how can they control stock market? I always heard the assertion that Chinese government will not let stock market down before 2008 Olympic, this is nonsense,
in current stock market scale, if Chinese government can control it, then it does not need stock market at all, the cause of setting up stock market is that the government can not control the economy or control very badly, then it hopes to use stock market to better allocate capital.
I think this is Macro Economy 101. stock market, inflation, job market, real estate market, they are interconnected very closely, plus globalization. I remember we used to laugh at "4 Southeast Asia Dragons", saying if US sneezes, the four will get a cold. Now, we are in the same position, maybe even worse, our economy is mostly driven by export which causes worsening relationship with neighboring economy, or drive by government spending, which is not citizen friendly, environment friendly, generating great waste,
A economy not driven by consumer is not going to be long lasting.
in current stock market scale, if Chinese government can control it, then it does not need stock market at all, the cause of setting up stock market is that the government can not control the economy or control very badly, then it hopes to use stock market to better allocate capital.
I think this is Macro Economy 101. stock market, inflation, job market, real estate market, they are interconnected very closely, plus globalization. I remember we used to laugh at "4 Southeast Asia Dragons", saying if US sneezes, the four will get a cold. Now, we are in the same position, maybe even worse, our economy is mostly driven by export which causes worsening relationship with neighboring economy, or drive by government spending, which is not citizen friendly, environment friendly, generating great waste,
A economy not driven by consumer is not going to be long lasting.