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It's safe to say that (perhaps) a new meme is breaking out regarding the Chinese market.

Whereas previously the dominant mode of thinking was that the country was doomed to a hard-landing property collapse (possibly taking out several banks in the process), today it seems the thinking is that unlike the US (during its bubble) China is actually taking the bull by the horns so to speak.

Yesterday it was reported that the country had instituted aggressive stress tests on the banks (envisioning a 60% fall in property prices).

The latest is that the country is clamping down further on mortgage lending, with new rules on down payments.

Shanghai fell overnight (possibly as a result of the news), but more and more the country is getting credit for its actions -- possibly explaining the big bounce from its recent lows -- and it seems possible that as long as the world market exists in this new Goldilocks state (or as David Rosenberg calls it, a market with a "palpable" sense of complacency), China will get credit for smart, counter-cyclical policy moves.

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Source: Yesterday's Thinking: China Is Going to Crash. Today's Thinking: China Is Handling Its Problems