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This is just a correction, unless China makes it worse

China has acted as if it has unlimited confidence but it needs a cooler head to intervene less and let market forces restore equilibrium

The Great Hall of the People, China
The Great Hall of the People, China Photo: iStock

China’s market crash began in June, but has accelerated rapidly since, despite massive intervention by government entities to stop it.

It has now triggered a sympathetic response from the world's capital markets (the market value of which is about $230 trillion, according to a recent McKinsey report) and stock prices in Europe, Japan and the US also slumped in another example of global market linkage.

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