Michael Pettis

The Shanghai Market Calls the Tune

JamesLewis, the derivatives story is indeed a very interesting one and continues to cause a lot of concern. Strangely, in all the talk about internationalizing the RMB no one seems to have discussed the impact this might have on the process.

Michael Xia, thanks for your kind comments, but as for the latter, it is nearly two weeks later and there still is no evidence of any concerted attacks nor evidence of actual syringes. The two clear “syringe” cases involve two junkies holding up a cab, something that probably occurs in every big city on a daily basis, and a junkie getting caught by police while trying to inject himself and then “threatening” the police with the syringe. Of the 106 reported cases (actually more than 500 reported but most of them rejected as groundless), no one has demonstrated that they attacks were caused by syringes rather than pins, knitting needles or (yes, several Urumqi doctors said this) insect bites. There has also been not a single case of a recipient testing positive for poison, AIDS, or anything else. Of course I am sympathetic to any real attacks, but I am also concerned about mass hysteria leading to beatings and deaths, which have already happened, according to police reports. The 19-year-old boy, Yilipan Yilihamuwho, pricked the girl with a pin may be an idiot, and may deserve some punishment, but the hysteria has landed him 15 years in jail – a pretty tough punishment