Built on sand and bubbles, stock market had to crash

THE TWO-MONTH BULL RUN of China's A-share market has finally come to an end. On Tuesday the indexes of both Shanghai Stock Exchange and Shenzhen Stock Exchange fell by more than 4 percent, the biggest single-day drop since late January. Comments:

The just-ended bull market was crazy; it far exceeded the expectations of the real economy, and stock prices overrated the profit potential of many companies. It was the authorities that created the bull market with the purpose of allowing more companies to be listed and solving financing problems. In such situations, individual shareholders who invest with their salaries become the biggest victims when the tide falls.

The Xinhua-sponsored think tank Outlook, via WeChat, May 7