China looks like it is heading for its version of the 1929 stock market crash

While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, it’s already being called China’s 1929 – the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression.

In any normal summer, a 30pc fall in the Chinese stock market – a loss of value roughly equivalent to the UK’s entire economic output last year – after an ascent which had seen share prices more than double within the space of a year would have been front page news across the globe.

  • Jabberwokk

    Thar she Blows!

  • Drunk_by_Noon

    I should just start selling transcripts of my e-mail and text conversations to Financial Times reporters.
    The BBC World News is all over this too.

    • David Murrell

      I have been watching BBC World News as well, on the hour. The China stock market burst would be funny, if one is not losing money in the North American markets. The China story is one of 90-million low information retail investors buying stock, during the bubble, using borrowed money, highly-levered. So the bubble bursts now, with banks or lenders calling in their rather precarious loans. This is a classic bubble bursting.

    • Exile1981

      NYSE is shut down today for “computer glitch” just after prices dropped fast.

  • Reader
  • Ron MacDonald

    This has been forecasted for years, but no one listened.

  • Justin St.Denis

    I wonder how this will impact the Vancouver real estate market.

    • Exile1981

      crash and burn baby

    • SDMatt

      Van City is a much better place for them to have their money, provided they can still make the mortgage payments.

    • Helios Megistos

      I hope that it crashes completely; I might then be able to afford to live in Point Grey!

      • G

        Da yerrow craw?

  • Exile1981

    The chinese media forbidden to talk about this any more yesterday by the gov’t. I guess our media is just playing along.

  • JoKeR
  • Clausewitz

    Slave economies tend to collapse from the weight of their own corrupt power structures. You can only milk a cow for so long before the teat runs dry.

  • DMB

    China will not be the economic super power of the 21st century as many economist had predicted. Between this potential financial crisis, a major housing bubble and severe pollution/environmental contamination China is just another economic fad that is running its course. The only thing it has going in its favour is its cheap labour.

  • China is a paper tiger. This was bound to happen.

  • canminuteman

    Everything I ever see about the Chinese economy or culture leads me to believe that everyone in China spends all their time trying to rip everyone else off. I bet that half or more of publicly traded companies in China are some sort of scam. Remember Sino Forest trading in Toronto? I bet that is just the tip of the iceberg. The whole thing will crash and burn.

    • dance…dancetotheradio

      I used to work with an older Chinese woman setting up meeting rooms.
      One of the things we supplied our meeting clients were baskets of mints on each meeting room table as part of our hotel standard.
      I used to get frustrated that we were not putting them out full.
      She only filled them half way.
      I asked why.
      She said the clients took all the mints with them when they left.
      That was her mindset.
      I told her to put them out full.
      We’re not going to lose a client over something as frivolous as ten bucks worth of Allan’s striped mints.

  • Bataviawillem

    There is only 2 factors driving the stock market and they are greed and fear, and it is a fine balancing act.

  • Helios Megistos

    The only good commie is a dead commie! Executions are carried out by the KMT in Shanghai as the Communist forces advance on the city.

  • Helios Megistos

    I predict an epic blood-bath; the Yellow Peril will self-destruct!

  • Helios Megistos

    Here is to the downfall of the Red Chinese Leviathan:

  • Helios Megistos

    The Red Chinese are going down……time to partee-hardee!