A moment of truth

When a share index plunges by 5.8% in a single day, it can't just be explained away by the usual trite observances that the market was 'taking a breather', 'looking for a new direction' or just succumbing to a spell of 'profit-taking'. No, this was serious. A moment of truth (see Postcard from No 528). What roiled the stock market on Monday was a blend of angst over signs of policy disunity within Beijing's government, the quality of Chinese growth, the sustainability of easy money policies, a couple of less than stellar statistics, poor news from the US consumer and concerns that Chinese share prices may have risen too high.

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Other Articles on this Issue

• The Big Call

  A local financial time bomb

• Consumer China

  Pharmaceuticals - a healthy course

  Sinovac and swine flu

  Sinopharm - a new contender

  Simcere – not immune

  Tongrentang – TCM bellwether

• Forbidden City

  Iron and awe

• Financial China

  Insurance - a structural play

  Ping An - not so tranquil

  China Life - in the balance

• Funds Data

  China zeal wavers

• Postcard From No 528

  Wobbling on the liquidity high wire

• Capital Intensive China

  Developers defy doomsayers

• Guest Column

  Bright prospects

• The Best of Chinese Commentators

  Inflation, inflation, inflation

  Sovereign wealth

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