Date: 8 July 2015
By: Robert Peston Economics editor
For all my obsession with the probable exit of Greece from the euro and the most important social-security-cutting and tax-reforming UK budget for many years, there is an earthquake happening in China that may end up touching our lives as much.
It is the plunge over the past month of Chinese shares – whose value has dropped by around a third since the high of 12 June.
So to make an apple-and-pears comparison: the loss in the value of Chinese companies at more than $3 trillion is about 20 times what most economists expect the write-offs of Greek government debt will ultimately turn out to be.
The difference, of course, is that the $3 trillion loss is divided among around 90 million Chinese people, rather than a handful of European governments. [FULL STORY]