A famous Mark Twain quote, related to his death announced on newspapers, reads: “the reports of my death have been greatly exaggerated”.
Danny Quay, London School professor, wrote on Asia House an article related to recent alarming signals of the China economy, and some comments sustaining the collapse of the system. And she argues that recent events “have attracted far too much attention relative to substance”.
The main reason of alarm, for Quah, is the belief that an authoritarian capitalism, such as the one of China cannot endure, especially in assets markets, that must be self-regulating and free. But the writer stressed that there is no Western economy that strictly enforces the laws of the wild market.
On the other hand, criticism points out the slowing pace of the economy, but the 7% 0r 6,9% GDP growth, at the RMB level are good, related to the dimension of to-day Chinese market. The stock market is too thin and underdeveloped, and the circuit breaker system may have been wrong settled, but no there is no signal that the system is collapsing.