Opinion

With the Real Estate Crash and Debt Defaults China Will Have to Withdraw From Almost All Global Financial Funding Channels

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With the Real Estate Crash and Debt Defaults China Will Have to Withdraw From Almost All Global Financial Funding Channels
The People's Bank of China, the central bank of China, in Beijing, in a file photo. maoyunping/Shutterstock
Law Ka-chung
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Commentary

Last week, the Chinese stock market plummeted; the Shanghai Composite Index (SHCOMP) dropped below 3,000 points, a mark of psychological significance. This happened against the backdrop of a “market rescue” by the authorities, which had banned short-selling positions by senior management of listed firms. As expected, such an act illustrated a classic example of bad signaling, conveying a negative insider message to the market.

Law Ka-chung
Law Ka-chung
Author
Law Ka-chung is a commentator on global macroeconomics and markets. He has been writing numerous newspaper and magazine columns and talking about markets on various TV, radio, and online channels in Hong Kong since 2005. He covers all types of economics and finance topics in the United States, Europe, and Asia, ranging from macroeconomic theories to market outlook for equities, currencies, rates, yields, and commodities. He has been the chief economist and strategist at a Hong Kong branch of the fifth-largest Chinese bank for more than 12 years. He has a Ph.D. in Economics, MSc in Mathematics, and MSc in Astrophysics.
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