Not that the government said much, however. Despite a massive selloff in the equity markets of the world’s second largest economy, Chinese premier Li Keqiang opted to skirt the issue when he made comments on a government website before the country’s markets opened.
China is confident, he said, and can handle any challenges that are thrown at it, was the gist of his remarks.
But the numbers speak for themselves.
China’s Shanghai Composite is now officially in bear market territory, having erased nearly 27% off its value since its peak above 5,166 on June 12. It’s an even worse story at the Shenzhen Composite, which is down over 38% in the same period.
The declines mark a return to earth with a resounding thump for Chinese equity markets, which had continued to boom even as the country’s...