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by dublinclontarf 4029 days ago
Actually having lived in China for a significant period of time I can say that the answer is to remove capital controls on Chinese citizens and allow them to invest anywhere else.

This will deflate the Chinese market bubble(and property bubble) almost immediately, you'll see this happen however when pigs are flying to the moon.

2 comments

The answer to what question? The policy has to be to defer the bubble collapse as much as possible in hope of the mythical "soft landing". Far more than western countries they depend on continuous economic growth as the tradeoff for lack of political freedom.
Deferring bubble collapses doesn't work so good as they just pop later and bigger.
Problem for the next Party leader.
So China should export its capital glut to the rest of the world, which already suffers a capital glut?