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Unorthodox Thoughts

chewing gum for the mind

Tag Archives: chinese bubble

With the Chinese Shanghai Stock Composite Index gaining more than 150% of its value over the last year, many people have feared the Chinese bubble will pop; and soon.  Over the last few weeks, Chinese stocks have lost approximately 1/3rd of their value as investors panic.  The Chinese regulators are now propping up the Shanghai and altering trading rules, which many observers are nervous about perhaps making the problem worse.

China and the United States are the world’s largest trading partners, so in other words we do not live in a vacuum.

I decided to compare the US stock market statistics from the year 2000 to 2015 with the Shanghai, which is quite interesting I think (if you are worried about bubbles).  China is the dark black line and the grey one is the US.

china-vs-usa-stock-market-small

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