An investor loses smiles when checking on stock index at a brokerage house in Huaibei, Anhui province, July 15, 2015. [Photo / IC]
BEIJING -- The recent stock market turbulence will not have a major spillover effect on China's real economy, global rating agency Moody's said Thursday.
The equity market turmoil does not warrant a change in the agency's forecast that China's real economic growth wil ...
The stock market is one of the important avenues of the financial economy, which is the place for 'capitals' to earn reasonable returns. As China's economy changes, becoming more 'capital' intensive, returns on 'capital' investments become more significant. Therefore, I personally think, that China should spend more energy and efforts in improving her financial economy, whereby people can get safe, stable and reasonable returns on their 'capital' investments and where enterprises can get cost-effective funding.
Interesting how the lost of 2+ trillion in market capitalization has minimal impact on the economy.
At the same time, gdp growth was forecasted to be on the decline and marginally averaging 3 to 4 % and all of a sudden a report shows up that H1 activities have hit the targeted 7% growth.. interesting piece of news in deed.