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To: 4rcane
“China changed the law early this year to allow peope to buy stocks they weren’t allowed to before, that was why the China stock market increased so much..”

China apparently has only 2% foreign investors, and the majority of those who hold stock are not experienced investors. When you take people living in a communist country, and allow them to accumulate some wealth, it's probably predictable that they will panic and sell off when they see that wealth diminishing in a big correction.

13 posted on 09/01/2015 5:25:20 AM PDT by pieceofthepuzzle
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To: pieceofthepuzzle

additionally, many have noted that the ordinary people of China are prone to gamble. Thus, the new and not understood purchase of stocks is envisioned as a bet.

it will be taken in stride because people know that you win some and you lose some


18 posted on 09/01/2015 5:29:39 AM PDT by bert ((K.E.; N.P.; GOPc.;+12, 73, .. Iran deal & holocaust: Obama's batting clean up for Adolph Hitler)
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