Taking Stock

As shares on the Chinese stock market fall due to a government decision to raise share transaction taxes, experts warn that the decline is only temporary. China’s share prices quadrupled over the past 18 months. Furthermore, the World Bank predicts that China’s economic growth for 2007 will reach 10.4 percent. But the Chinese market is not invincible. Perhaps the greatest risks to the Chinese economy are public-policy measures that would restrict private investors. The government must consider how any actions regarding the stock market will affect society and strive for fairness. United by a set of common beliefs, investors could be the next powerful political force in China. –YaleGlobal