After central banks flooded the world with money in the wake of the coronavirus crisis, retail investors rushed into the financial markets, sending stocks sharply higher, despite weak economic fundamentals.
If that sounds familiar, think again. It describes not the U.S., but China.
What’s more, the market mania that gripped the world’s second-largest economy in the past few weeks may not be as disconnected from the real economy as skeptical Western observers may believe. Perhaps even more surprisingly, it suggests some positive changes have come to the often opaque Chinese system — changes that may even work to the benefit of both countries.
On Monday, China’s CSI 300