Why China's stock market slide is (probably) a big nothingburger

The fate of wealthy investors is not the fate of an entire economy

China stock exchange
(Image credit: STR/AFP/Getty Images)

In the last few weeks, the world's second-largest economy has been looking a might bit shaky. After a remarkable run-up that began in mid-2014, China's stock market fell like a rock, losing roughly a third of its value in three weeks. The main Shanghai and Hong Kong indexes both fell 6 percent on Wednesday alone.

The Chinese government has moved away from flat-out communism in recent decades, to a kind of state-run capitalism that would be anathema here in America. And what's especially remarkable is the way the government has thrown the kitchen sink at the problem, from stock buy-ups to massive freezing of stock trades — all to no avail.

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