New York, NY
It began in June, when the Chinese stock market began an uncharacteristic tumble amid a sharp sell-off that prompted a barrage of support measures from the Chinese government, which helped to calm investors. But then, near the end of July, Chinese regulators said they were prepared to buy shares to stabilize the stock market and avert "systemic risks", after major indices plunged more than 8 percent in the biggest one-day fall since 2007. The securities regulator also said market authorities would deal severely with anyone engaged in the "malicious shorting of stocks", in Beijing's latest attempt to stave off a full-blown market crash.
And while the Western media made much of the Chinese stock situation, those closer to it were quick to note that the Chinese stock market bears little resemblance to its Western counterparts. The problems there are more political, than economic, in nature. And, the bottom line is that China is on more solid footing that some of the more overblown media coverage would suggest.
One of the strongest voices in this has been Mr. Greenberg, whose own personal experience in China lends a unique perspective on what is really driving the country, and what its prospects truly are. As analysts scrambled to make sense of the Chinese stock situation, the Wall Street Journal interviewed Mr. Greenberg on it, and his key point was one of restraint: “Let’s not get all panicky,” he said.
China, Mr. Greenberg pointed out, is coming off of a remarkable year-long climb, and that some of the sell-off is merely profit-taking after the market’s rally. Greenberg said his long-term view on China is a positive one, and that what the market needs most is a strong statement from President Xi Jinping to re-establish investor confidence and dispel false notions that the country is going out of business.
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