This is an excellent series of articles about the current economy affairs in China.
It is also refreshing to see more and more China ba<x>sed experts in the economic arena start to realize how expensive China A share equites actually are compared with common benchmarks such as forward PE and its international peers. The market there is like a circus with many stocks jump 10% many times within a very short period of time.
I agree holding the exchange rate steady (“定海神针”) is one of very few options available to China in order to avoid a hardlanding and recession at the end of the current boom cycle.
Unfortunately it is almost impossible for China to deploy the “定海神针” policy as long as it still runs a huge trade surplus. The vicious cycle has accelerated too much in the past couple of years, and the current admin in China failed to take any effective measures to curb the bubble due to internal and international constraints.
It is like a car which should be slowed down at 75 Miles per hour, now it is going at 90 Miles per hour, the driver is scared and don't know what to do now...The only way out is a very bad crash, not a matter of if, but when.
