Can You Keep up with China’s Stock Market?

Just a week ago, Chinese officials were defending that the rise of stamp duties was a rumor. Just two days ago, the stamp duties were suddenly nearly tripled. This was followed by a vaporized 1,240 billion market value in the stock market or 6.5% market value. The next day, it dropped another 10% but rebounded miraculously. Even my instructor in Macroeconomics wrote a comment before the sudden rebound and has to update it. Can you keep up the pace with China’s Stock Market?

One editorial in FTChinese.com told you to “relax about China’s stock market”. It sounds interesting when you are facing the sudden drop and someone is shouting against the government’s honesty and the harsh policies facing them. However, there are some truths in it.

When I expressed my concern for the collapse of China’s stock market two weeks ago, a friend of mine pacified my with the assertion that the China’s whole economy would not be influenced too much even in the worst situation that the stock market collapse. This was the same assertion as the editorial.

China’s stock market is somewhat independent and has few relations with other markets. It is bad when outside regards it as a huge opportunity for investment. However, it is good news if the opportunity turns into a burden as it is out of control itself. The limited opportunity of investment goes along with the limited risk in it.

What’s more, the assertion that the market would turn sour is still not a certain one as the yesterday’s rebound gave many people a surprise. The most important thing now probably is to try to keep up with the update information of China’s stock market.