Be Scared of China's Debt, Not Its Stocks

A credit crisis poses much more risk than a bursting equity bubble.

Climbing a great wall of worry.

Photographer: ChinaFotoPress/Getty Images

China’s stock market is crashing again. After two days this week with big and rapid declines -- the latest of which shut off trading only a few minutes after the open -- Chinese stocks are back in the neighborhood of their mid-2015 lows. The raft of administrative measures that the Chinese government has used to prop up its markets since the big plunge last year seems to only have postponed further declines, rather than prevented them. 

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