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Book Synopsis New Cycle or Old (Guaranteed) Bubble?

Ning Zhu, Oct 04, 2017, 557 reads

It seems necessary that one gains some deeper understanding of the sources of China’s phenomenal economic growth. Apart from all well-founded extant explanations, my recent book Guaranteed Bubble argues for another important yet previously overlooked source: the guarantees provided by the Chinese government.

Trading Restriction as a Channel of Financial Contagion—Evidence from China’s Stock Market

Laura Xiaolei Liu, Jiajie Xu, Ninghua Zhong, Oct 18, 2017, 289 reads

China’s stock market imposes various trading restrictions such as daily price limits and trading suspension rules, which are intended to stabilize the market during turmoil. During China’s stock market crash in the summer of 2015, these trading restrictions made many highly valued stocks non-tradable and consequently caused mutual funds facing redemption pressure or with precautious concerns to sell other tradable stocks, exacerbating their price drops.