Actually I find there is much to admire in the speed and efficiency on how the Chinese build infrastructure. At least when the Chinese build high speeds trains to nowhere most of the money is spent on low and middle skill construction workers and its done over a short period of time.
In the US most of the money seems to get spent on "high" skilled lawyers and consultants develop plans writing EIS etc. The project drag out over decades and cost go through the roof. The Chinese system of jailing obstructionist lawyers does wonders on reducing the NIMBY attitude that is rampant in the US. #sorrynotsorry
However, there is really nothing that I can see worth emulate in the Chinese form of capitalism when it comes to financial affairs. Yes Vanguard is silly to pretend that Chinese shares are like American company shares. They are not as recent events show.
Well put Clifp.
Having lived in china for the past 8 years, and in the field of finance, I know less about the inner workings of the Chinese financial markets today than the day I set foot on the Middle Kingdom soil.
Lack of financial Transparency, excessive speculation, and arbitrary and overnight government regulation are not ingredients for successful capital markets.
That said, I know many who made a boatload on the upswing this time and are still ahead despite the "crash" of the last 2 weeks. A year ago (and for much of the prior 5 years ) the market was at 2000... It recently flew to 5200 and now back to 3800 or so. Still nearly double from a year ago.
Not bad at all for an emerging market ...
The reason the USA catches a cold when china gets the flu is simply that the market is dominated by individual investors- consumers of stuff - who will not be able to afford the latest Mercedes Audi or Porsche with wealth decreasing in equities ( and a slow decline in real estate has not helped consumer confidence either).
There are those who say this was a government sponsored bull market. Great if you got in early ! Ride the bull. Tame the bear.
Most USA reporters and media are totally naive to china and her markers and the way business happens and to make even the vaguest comparison to the USA market is plain ignorant.
Back to the first point on infrastructure - I envy the Chinese infrastructure. USA infrastructure, bridges, roads absolutely suck. Decrepit and broken at best. And we have no high speed rail what so ever. The high speed trains are awesome. Used them between Beijing Shanghai Guangzhou hangzhou, Xian, Dalian and Cheng du all the time. They are much better than air travel and efficient as can be. We have that joke called Amtrak. Embarrassing ...
Ok. Enough for me . Let's see what the real china experts have to say.