Editorial: Is another global recession around the corner?

摘要

It has often been said that if America sneezes then the world catches a cold. Commentators are now using the expression to refer to China—reflecting a long-standing dependence of many of the world's economies on China as an engine of economic growth. Doubts over China's ability to remain an engine of growth stem from recent falls in Chinese share prices, a slowdown in the country's economic growth and the depreciation of its currency—the renminbi. The falls in Chinese share prices have come as a shock to investors who, in China's maturing economy, did not believe that Chinese shares could go down as well as up. On June 12,2015, the Shanghai Stock Exchange Composite Index closed at 5,166.35—its highest level since January 18, 2008—after surging by more than 150% in 12 months. But by the end of June 19 it was down by 13.3% to 4,478.36, its lowest level since the global financial crisis. On August 25, dubbed "Black Tuesday", it fell by 7.6% to 2,964.97—a shocking 42.6% below its June 12 peak.