EVEN IN THE face of the current slowdown, China’s annual GDP growth is motoring along at about 8%. So why are China’s stock markets drifting listlessly? The two domestic securities markets, in Shanghai and Shenzhen, have barely moved in three years. Their combined market capitalization, officially some $500 billion and second in size in Asia only to Japan’s, is in fact less than $200 billion when account is taken of what is actually tradable and not state-owned.
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