Stock Market Volatility Is Not a Harbinger of Collapsing Growth

It would be a sad end to an amazing story. An economic miracle – one that lifted 300 million people from poverty and shifted the world's economic center of gravity – collapsing under the weight of risky investments and a financial crisis.

This seems to be the theme about the Chinese economy of many commentaries in the international media following the recent stock market turbulence and changes in the exchange rate mechanism. Growth collapse to as low as 1 to 2 percent has been suggested. The volatility in the stock market seems to have confirmed the most pessimistic claims.