Despite being opaque, confusing and occasionally dysfunctional, the Chinese leadership has exhibited something close to genius in its ability to dodge financial bullets.
ChinaÆs unfashionable capital controls have once again in the face of slumping equity markets in the rest of the region proved to be highly effective in insulating China from the meltdown affecting other developing countries in the region while the Shanghai A-share market was down 2% yesterday, it is still up 78% year-to-date.
The capital controls are clearly binding at the margins. You have seen major sell-offs in other low-income countries around the region, but much...
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