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On Monday the Shanghai Stock Exchange closed down by 8.5%. On Tuesday it fell by another 7.6%.
This is the Chinese stock market's biggest two-day plunge in almost 20 years.
Chinese stocks are, so far, down 42% from their peak seen in June.
Is China in a recession?
Some commentators seem to think so.
China continues to print real GDP growth figures of 7%, but our analysis shows that the economy is actually contracting.— Investec Asset Management’s Clyde Rossouw and Sumesh Chetty. (Moneyweb interview, 24 August, 2015)
China’s growth numbers may well be overstated. Their real growth rate is close to zero. Bubbles are bursting.— Chris Hart, Chief Economist at Investment Solutions (702/CapeTalk The Money Show July 15, 2015)
Chinese debt levels have gone up fourfold since 2008.— Chris Hart, Chief Economist at Investment Solutions (702/CapeTalk The Money Show July 15, 2015)