26 August 2015

Always look on the bright side

Candide has been reborn in the shape of Xinhua, China's official news agency:
BEIJING, Aug. 25 (Xinhua) -- Despite the tumbling of stock markets, investors should forgo their unnecessary anxiety over China because the long-term prediction for China's economy still remains rosy and Beijing has the will and means to avert a financial crisis.
The Chinese stock markets had their two worst days in eight years with the benchmark Shanghai Composite Index tumbling 8.49 percent on Monday and continuing to lose another 7.6 percent on Tuesday, crashing to its lowest level since December 2014. It is the first time in 10 months that the index has been below 3,000 points.
The plunge of stocks, the depreciation of China's currency and its slowing growth pace after years of high-speed development have all put a question mark on the health of the world's second largest economy.
However, such a worry is completely unnecessary. China's economy will remain robust and the positive prediction on its future should not be affected by the current fluctuation of stock markets.
Economists believe that the capital market has been over-reacting to the slowdown of the Chinese economy, which is caused in part by the Chinese government's decision to transform the current economy into a more efficient and sustainable one.
So there you go, all is for the best in this best of all possible worlds ...


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