Great fall of China?

Following decades of double-digit growth, China is now experiencing a new normal

On 19 January 2015 China’s two main stock exchanges fell 7.7%, wiping $315bn (£209bn) off the Shanghai index in a single day – the biggest losses since June 2008.

Less than 24 hours later the Chinese government confirmed it had missed its official annual growth target for the first time in 15 years. GDP for 2014 came in at 7.4%, the lowest annual growth rate since 1990, when the country was still suffering from the economic sanctions imposed after the Tiananmen Square massacre.

Markets were already nervous…

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