What a China selloff may mean for U.S. investors

Peace and Freedom

China’s stock market:

It’s not just about the market rout. It’s about a structural shift to slower growth.By Fidelity Viewpoint

After a year of flying high, stocks in China’s markets have sold off dramatically in recent weeks. The drop contributed to volatility in bond and currency markets, and is another sign of stress in the world’s second largest and formerly fastest-growing economy.

The rally in Chinese stock prices through the first few months of 2015 had made it one of the best performing markets in the world, but the markets have since entered bear market territory. (See chart right.) Chinese policymakers have taken a series of measures that attempt to calm the markets. But the episode sheds light on China’s…

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