Bigger issues than propping up the stock market beckon.
Today, the Shanghai Composite Index dropped another 2.9% to 2,486.42. In the bigger picture, that’s quite an accomplishment:
Lowest since November 27, 2014, nearly four years ago
Down 30% from its recent peak on January 24, 2018, (3,559.47)
Down 52% from its last bubble peak on June 12, 2015 (5,166)
Down 59% from its all-time bubble peak on October 16, 2007 (6,092)
And back where it had first been on December 27, 2006, nearly 12 years ago.
The chart of the Shanghai Stock Exchange Composite Index (SSE) shows the 2015-bubble and its implosion, followed by a rise from the January-2016 low, which had been endlessly touted in the US as the next big buying opportunity to lure US investors into the China miracle. Investors who swallowed this hype got crushed again: