Redwood: Is China damaged?

Chinese trading suspended twice this week

John Redwood (pictured), Charles Stanley's global investment strategist, looks at the implications of the current turmoil in Chinese markets.

Twice this week the Chinese domestic stock market has traded briefly, only to hit its lower permitted limit, a fall of 7% in a day. The market has then closed. [On Thursday], the market only stayed open for 15 minutes. The poor performance of Chinese shares has sent shock waves around other equity markets, and led investors to ask what is wrong? China ditches circuit breaker after shortest ever trading session Last summer the Chinese authorities lost control of their domestic stock markets. First they rose rapidly and excessively. Then they plunged. The authorities intervened in a n...