My live interview on BBC Radio 4 on 11 July, 2015
Download Radio_4_FM_2015-07-11_07-24-10 (It may take anything up to two minutes or so to download the podcast. Please be patient.)
N.B. The sell-off by 30% in a matter of days is alarming and reveals innate weaknesses of China's stock market. However, it doesn't signal the beginning of the end of the China story as commonly portrayed. The following facts are relevant -
- China's stock market size is 1/3 of GDP, compared with generally over 100% in advanced countries.
- Stocks represent less than 15% of China's household assets.
- They account for less than 1.5% of total banking assets.
- Notwithstanding the 30% market drop, average share prices are still up 75% compared with last year.
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