Tomorrow could be interesting. The new housing data is likely worse than “market expectations”, coupled with Greenie’s comments, coupled with near universal expectation of some sort of correction … there could be a sell-off that affects the Chinese much as they affected the US back in February, no doubt about it. Long term, though, the Chinese government is flush with cash and Chinese citizens have enormous savings. It may take a while for that market to ultimately stabilize, barring some seriously contractionary monetary policy.
