Well, we have officially heard it from the horse’s mouth: China’s stock market bubble has finally burst.
Speaking at a meeting of G20 finance ministers in Ankara over the weekend, Zhou Xiaochuan, governor of the People’s Bank of China (PBOC), admitted that the stock market bubble in his country had really “burst.” Ostensibly, the PBOC head had said this three times.
This was confirmed by Japanese Finance Minister Taro, who told reporters the admission “wasn’t enough.”
“It wasn’t enough,” Aso told reporters. “They may have tried to be constructive, but they weren’t detailed enough.”
Meanwhile, PBOC deputy governor Yi Gang stated that the currency devaluation last month wasn’t meant to make local exporters more competitive.
“No one can predict exactly on the market volatility, but I’m confident that the renminbi exchange rate will be more or less stable around the equilibrium level,” Yi said, adding that the fundamentals of the world’s second largest economy “are fine.”
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