Comparing the shakeout of China’s property sector to America’s Great Financial Crisis of 2008 has become a popular meme in the commentariat. Stock markets don’t see it that way: During the 10 months from November through August in 2008, US financial stocks lost half their market value, while Chinese financial stocks have gained 20 percent.
The chart below compares the S&P’s Financials sub-index in the leadup to the GFC (October 31, 2007, through August 15, 2008) to the performance of the financials sub-index of the Shenzhen 300 Index during the same months of 2022-2023.
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