Shanghai – term describing a type of kidnapping. Back in the 17th and 18th century in back alleys behind orphanages and bars there were trap doors that were watched and opened on drunken people or wandering children, then the children or drunks were beaten up until unconscious and brought aboard a ship to do slave labor out at sea until they died.
“we need one more crew member, let’s shanghai some drunk fuck.” – Urban Dictionary
What a warped world.
Shanghai ugly. Trap door in the definition above is spot on.
The index is now down 30 percent from the January high.
China is not an asset dependent economy as is the U.S., therefore the stock market has less an impact on growth. You can see from the monthly chart, the Chinese have seen this picture before. Huge speculative spikes, gravity finally takes over, then the proverbial dead cat bounce. Wash, rinse, repeat.
Monthly chart looks like the Shanghai Composite is headed for the 2,000 support level, another 20 percent lower.
China is still a command economy, folks. Remember that.
Global Macro Monitor 
Never trust your own money with a government or country that has no history, tradition, or respect for the rule of law or personal property rights. Numbers can be manipulated and what is your’s tonight can easily become someone else’s by tomorrow morning.
If you are an emerging markets investor, you already know this to be true. Nevertheless, it is especially true when dealing with the Chi Coms.
Thomas Friedman of The NY Times thinks China and its command economy is wonderful. A beacon we should aspire to. It’s amazing the amount of importance a “respected journalist” can acquire.
Thanks for your insight GMM.