Stock markets in Hong Kong and China are still shuffling today. Individual investors should take a wait-and-see approach instead of buying more stocks.
If the stock prices keep going down, the bubbles of the real estate markets in China and Hong Kong will burst. The real estate prices are unaffordable for many people in China and Hong Kong for so long. For users, it is not a perfect time to buy flats with mortgage loans this year. Furthermore, if the bearish markets eventually happens in China, that will be the first time for people in China to face financial crisis since the reform and opening-up policy in 1978. Will China’s government have enough experiences to tackle the economic bubbles and collapse? China’s government is considering RMB devaluation to fight against the US tariffs. However, the officers may need to consider the impacts of monetary policy on the baby boomers retirements very seriously. If the assets in China are forced to devalue, that will become a big issue for social stability in China.