Sophisse

What China's Stock Market Implosion Means for Oil

I don't think the wealth effect is going to have too much of an effect on the average chinese citizen. Most people don't own any shares at all. What matters to them is economic growth, which is still strong in china. As long as their economy grows, they will burn more oil. That will be true even if the government ends their subsidies, though I'm sure that would cause a slowdown in oil usage growth and very likely a short-term contraction of usage.