What We're Reading

China’s market downfall has been dramatic and painful for the investors involved. But so far there has been little immediate impact on the rest of the world, because China tightly limits foreign investment in mainland stocks.

China’s stock markets are, for the most part, a mom and pop affair—about 80% of the trading that happens in Shanghai and Shenzhen is done by Chinese individuals. They represent at most 14% of the total Chinese population.

But there’s little doubt the effects of this downturn will be felt globally—it just may take some time. After all, Chinese investors have lost more about $3.4 trillion in equity value from the markets mid-June peak until the July 7 close:

And although the government is supporting state-owned companies in the markets, other companies have seen their market value plummet.

As of July 8, about half of the stocks that traded in Shanghai and Shenzhen have voluntarily halted trading indefinitely—which potentially puts the brakes on everything from co

China traders on margin accounts is a thought both wildly exciting, yet utterly terrifying at the same time.  Even more so in the wake of $10 billion in fraudulent currency trades discovered just last week. 

Chinese markets have had a long standing reputation as being nothing more than unmonitored casinos plagued with corruption and insider trading.  What could possibly go wrong?

According to the WSJ, the Hong Kong and Shanghai stock exchanges have published an overhaul of rules governing a new trading link that will open China's tightly held capital markets to the investing public, ahead of a launch that could take place as early as end of October.

The Chinese government has vowed to encourage further capital flow and open the country’s markets to international investors and conceded previously that numerous reforms would have to take place.  Such reforms risk destabilizing its economy, which is still veiled by strict capital controls.  Therefore the government has been implementin