UPDATES
See the Spring update above 28/9/2015
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See mineral news above 7/9/2015
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POST
China is a centrally controlled
economy where the government interferes in every facet of life ,including tightly regulating economic activity.
Obviously always with the best intentions. To gain more traction and direction economically, they loosened controls on some aspects of commercial life and even allowed a stock exchange to come into existence.
Every country has a number of enterprising citizens who then listed on the exchange and found they could make money trading shares. News quickly spread and the masses stared to join in. Little did thee traders understand that an individual stock should increase in value only as it's dividend grows on a sound footing that it makes more profit and all types of shares started to move up sharply ,some into almost into the stratosphere ! There was also a building boom which further excrebiated the worsening situation. Bubbles formed and the inevitable crash followed. The warning signs were
there for the last three years, of course many excuses were made that thing were not that bad.
Different from other countries, the Chinese government continues to interfere by measures such as preventing money brought in from around the world so invested from leaving their country. They also curbed bear activity which would have prevented the worst sell offs and goes in for buying shares in untenable stocks to keep the price from falling.
All this upset the world stock markets as one felt China a couple of years ago looked as if it would lift the mantle of being the strongest economy in the world from the United States of America. This course of events looks now as if this will never come about.
Now to divert their citizens from their troubles they are unfortunately turning to military solutions by fermenting situations with neighbours.
