Bobwins

China Still Vulnerable to Slowdown, Despite Domestic Market 'Buffer'

The stock market is small in China. There was rampant speculation and that has resulted in a crash, as it usually does.

Your article doesn't mention what I expect will also bolster the Chinese economy. China is like the US in the 50's, 60's and 70's. They are building the infrastructure to support their tremendous growth. We are talking about them dropping below double digit growth for the first time in the decade. We would kill for 5% growth.

The building of freeways, bridges, power grid, dams, nuclear power plants, rail, subway, etc. is a tremendous addition to the Chinese economy. While it won't make up for all the losses in low cost manufacturing jobs, it will be steady due to government funding.

Large infrastructure projects do not stop and start with expectations. They are building them continuously to try to catch up and stay ahead of growth. At this stage in their growth cycle, China is fundamentally a lot stronger than their fledging stock market. Bobwins