Bourse Blowout Shouldn't Brake China

Real concerns about overheating sparked the record sell-off. But the mainland's economy is fundamentally sound, and growth looks set to continue

On Feb. 27 the biggest drop in Chinese stock prices in well over a decade started in Shanghai and Shenzhen, then spread like a miasma from Wall Street to Europe and other bourses in Asia. It didn't much matter that China is still on track for double-digit growth in 2007—or that the real impact of the market meltdown elsewhere was primarily psychological. It still fed into worries in the U.S. that have nothing much to do with China.

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