Everyone's Got a China Call as Markets Grapple With Who's Right

George Soros says China is headed for a hard landing. Templeton Global Advisors Ltd. says it’s making a normal economic shift, while Goldman Sachs Group Inc. says investors are overstating the slowdown’s impact on the world.

Who to believe? Traders are struggling to decide. The Shanghai Composite Index swung between gains and losses every day this week, while anxiety over China’s prospects pushed U.S. stock volatility to an almost four-month high on Wednesday. The turbulence has gotten so extreme that China’s vice president said the government is preparing increased regulation to limit swings.