The world wanted China to go capitalist, did it not? Well, welcome to capitalism, people. When a country as powerful and as large as China is allowing for its investor class to ship money out of country, and is allowing foreigners to ship money into its stock market for the first time ever, this is what is going to happen. Asset prices are going to go crazy for a little while.
A handful of companies have taken a hit recently, becoming unwilling examples of the China Bubble — as if China is the only country to ever have a bubble. Better yet, in the West, the narrative is that China is just not allowed to have a bubble. It can open its market, but asset prices can never inflate….