I’m no economist, but shouldn’t the fact that China’s main stockmarket has lost 28% of its share value since mid June be a cause of concern for some? As far as I understand stuff, NZ was somewhat buffered from the 2008 financial collapse in the US because of its financial and trade relationships with China. Certainly that was the case with Australia, given that China was a huge export market for its raw materials.
So what now?
I see a supposed ‘brighter future’ for NZ dimming somewhat given that losses in the Shanghai stock exchange now exceed US $2 Trillion off the back of widespread borrowing that got invested in stocks; stocks that are now falling through the floor. It seems there are no signs of a let up either and others indicating that the Chinese government is somewhat worried.
Wonder if Wee Johnny’s relaxed about it?