[Title updated at the request of two messages in my inbox.]
Say you’re a new Chinese stock market investor. You’ve done well with your job over the last couple of years. You’ve scrimped and saved. With the help of your parents, you made the down payment on that new condo in Minhang District, and – with some careful planning – you’ve actually managed to accrue a small nest egg worthy of investing in the Shanghai stock markets. It’s been mostly good. Until this week, at least, it’s been the best financial decision of your life. Sure, those occasional breath-taking drops in the Shanghai composite index give you indigestion, but – let’s face it – who can argue with the otherwise steady march of progress and ever-increasing stock prices?
But then, much to your horror (not to mention, that of your parents) the Shanghai composite drops 5% on Monday, and another 7% on Tuesday. On Wednesday you go to work, sinking feeling in your stomach (“now how am I going to cover the interest indexed payments on my mortgage???”) in search of solace. Any solace. And so, while waiting among the crowds at the increasingly crowded Xinzhuang station (each feeling the same indexed mortgage indigestion), you happen to glance at the morning edition of Shanghai Daily. Sure, it’s been awhile since you’ve exercised your high school English, but you’re desperate enough for financial solace that you actually bother to try and decipher the pull quote below the headline, this year’s nominee for “Dumbest Use of Nationalism by a State-Owned Newspaper”:
In case that’s not clear, the quote from Peng Yunliang, an “analyst at Shanghai Securities,” is enlarged here: