http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism The End of Chinese Exceptionalism The Chinese stock markets continue to slide. As many as forty percent of stocks are not trading. Many stocks fall ten percent as soon as the market opens and then are closed to trading for the day. More than thirty percent of the value on Chinese exchanges has evaporated in the last month. China’s market crash means more than investors losing money. It means the end of Chinese exceptionalism. The Washington Post reports the story. What had been hailed as a bull market that would embody China’s dream of national rejuvenation has turned into a burst bubble, and fevered government efforts to arrest a month-long slide in stock prices proved fruitless Wednesday. For decades, enthusiasts have argued that China was the exception to the rule: that its far-sighted leaders could avoid the debt trap that every other so-called miracle economy had fallen into since the Second World War. That idea could be the biggest casualty of the crash, both at home and abroad. Managed capitalism was supposed to be a better route to success than a market driven economy. But, the huge hidden debt burden in China is similar to what happened in Japan in the late 1980s when an economy seemingly set to take over the world collapsed into more than two decades of deflation. Will the end of Chinese exceptionalism lead to a market driven economy or a retrenchment into an old style Communist dictatorship? And what does all of this mean for the Western investor? Is It Time to Invest Yet? The time honored blood in the streets investing scenario would have it that the best time to invest is when things are at their worst. There certainly are good Chinese companies available as American Depository Receipts in the US market. But have these stocks hit bottom yet? Reuters reports that Chinese ADRs are still falling. The weeks-long tumble in the Chinese stock market is continuing to spill over into China-focused exchange traded funds and ADRs in the United States, boosting demand for hedging in the U.S. options market. Despite Beijing's best efforts, China's main stock indexes have lost about a third of their value since mid-June, and Chinese shares trading in the United States are feeling the pinch. The drop in the Chinese market has led to some 20 Chinese ADRs falling 20 percent or more over the last month. Alibaba whose IPO opened at $90 and which peaked at nearly $120 last year has closed at its all-time low of $77.98. The end of Chinese exceptionalism will not necessarily damage all stocks. The trick will be to sort out which to buy at the bottom and which to avoid at all costs. That time has apparently not yet come. Is There More of a Downside? The end of perceived Chinese exceptionalism will likely cause investors to think twice before investing in China. The slowing Chinese economy may slow more as equity evaporat

1. THE END OF CHINESE
EXCEPTIONALISM
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The Chinese stock markets continue
to slide.

3. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
As many as forty percent of stocks
are not trading.

4. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
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5. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Many stocks fall ten percent as soon
as the market opens and then are
closed to trading for the day.

6. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
More than thirty percent of the value
on Chinese exchanges has
evaporated in the last month.

7. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
China’s market crash means more
than investors losing money.

8. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
It means the end of Chinese
exceptionalism.

9. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The Washington Post reports the
story.

10. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
What had been hailed as a bull
market that would embody China’s
dream of national rejuvenation has
turned into a burst bubble

11. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
And fevered government efforts to
arrest a month-long slide in stock
prices proved fruitless Wednesday.

12. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
For decades, enthusiasts have
argued that China was the exception
to the rule:

13. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
That its far-sighted leaders could
avoid the debt trap that every other
so-called miracle economy had fallen
into since the Second World War.

14. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
That idea could be the biggest
casualty of the crash, both at home
and abroad.

15. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Managed capitalism was supposed
to be a better route to success than a
market driven economy.

16. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
But, the huge hidden debt burden in
China is similar to what happened in
Japan in the late 1980s when an
economy seemingly set to take over
the world collapsed into more than
two decades of deflation.

17. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Will the end of Chinese
exceptionalism lead to a market
driven economy or a retrenchment
into an old style Communist
dictatorship?

18. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
And what does all of this mean for
the Western investor?

19. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Is It Time to Invest Yet?

20. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The time honored blood in the
streets investing scenario would
have it that the best time to invest is
when things are at their worst.

21. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
There certainly are good Chinese
companies available as American
Depository Receipts in the US
market.

22. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
But have these stocks hit bottom
yet?

23. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Reuters reports that Chinese
ADRs are still falling.

24. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The weeks-long tumble in the
Chinese stock market is continuing to
spill over into China-focused
exchange traded funds and ADRs in
the United States, boosting demand
for hedging in the U.S. options
market.

25. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Despite Beijing’s best efforts, China’s
main stock indexes have lost about a
third of their value since mid-June,
and Chinese shares trading in the
United States are feeling the pinch.

26. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The drop in the Chinese market has
led to some 20 Chinese ADRs falling
20 percent or more over the last
month.

27. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Alibaba whose IPO opened at $90
and which peaked at nearly $120 last
year has closed at its all-time low of
$77.98.

28. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The end of Chinese exceptionalism
will not necessarily damage all
stocks.

29. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The trick will be to sort out which to
buy at the bottom and which to avoid
at all costs.

30. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
That time has apparently not yet
come.

31. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Is There More of a
Downside?

32. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The end of perceived Chinese
exceptionalism will likely cause
investors to think twice before
investing in China.

33. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The slowing Chinese economy may
slow more as equity evaporates.

34. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The further downside risk is of social
unrest and political upheaval.

35. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The current government has created
enemies in cracking down on
corruption.

36. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
There are likely those who are
sharpening knives behind the backs
of the current leaders.

37. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
The Wall Street Journal calls our
attention to the Chinese
government’s response to the market
meltdown and says it reveals deep
insecurity.

38. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Far more than simply a market crisis,
the turmoil on the Shanghai Stock
Exchange is viewed by China’s
leadership as a potential security
threat to the regime.

39. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
That helps explain the barrage of
measures unleashed by financial
authorities to counter a sudden
market downturn that threatened to
shake public confidence in the
government.

40. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
In that sense, the unprecedented
rescue moves, including a
multibillion-dollar fund set up by
Chinese brokerages

41. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
To buy blue chips at the
government’s behest is a preview of
what’s to come following the passage
last week of a national-security law
that massively expands the definition
of threats to the state to cover almost
every aspect of domestic life

42. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Including “financial risk,” as well as
international affairs. The law explicitly
states that economic security is the
foundation of national security.

43. http://profitableinvestingtips.com/profitable-investing-tips/the-end-of-chinese-exceptionalism
Stay tuned for social and political
events on the Chinese mainland as
the end of Chinese exceptionalism
unfolds.