View: As China’s Markets Melt, Echoes of 2008

July 13, 2015 by Loch Adamson

  • Print
  • Please login
People's Bank of China headquarters, Beijing With Chinese stocks tumbling, the government has scrambled to prop up shares and has even enlisted the country’s sovereign wealth fund to help stabilize the market. But history shows battling primal market forces of fear and greed can be difficult. The contracting market for China A-shares and their ilk carries with it more than a whiff of 2008. Certainly the sharp reset of overpriced assets in Shanghai and Shenzhen brings to mind parallels with the collapse of the U.S. housing and other markets seven years ago. Back then, enabled by government connivance or negligence, a U.S. housing bubble of massive proportions was allowed to develop, even encouraged, fostering a dangerously profligate spell of easy lending. Home buyers, residential builders, mortgage originators and banks all went to town. When housing prices and related subprime securities and derivatives began to revert, as they must…

Sign-up for your free account to read this article

Get Started

Already have an account?

Log In Here

Updated Fund Profiles

Our market-leading fund profile library provides unrivalled analysis of more than 90 government and sovereign funds.

Register to read fund profiles

Recent SWF Investments

Search the database of direct investments and mandates by fund, industry and target market to identify past deals that match your requirements. Access over $1 trillion worth of transactions dating back to the 1960s.

Register to explore our data

Latest SWF News

Sovereign Wealth Center makes staying abreast of the most recent government and sovereign fund events easy. Our team undertakes a thorough review of global news feeds every morning and distills salient points.

Register for the latest SWF news
Join the discussion:

To be able to print this content,
you must be a subscriber

For details on your subscription options,
please contact: