The turmoil gripping China’s equity market doesn’t reflect the broader condition of the world’s second largest economy, some economists and analysts said, as Shanghai stocks resumed their downward spiral on Tuesday.
“The collapse of the equity bubble tells us next to nothing about the state of China’s economy,” Mark Williams, chief Asia economist at Capital Economics, wrote in a Tuesday note titled ‘Panic about China is overblown’.
“In fact, recent data have been more positive than the headlines might suggest, with large parts of the economy still looking strong. Policymakers in China also have the luxury of still being able to loosen policy if necessary,” he said.
