Market analysts like to talk about whether the US is entering a bear market. by the final quarter, the S&P is down a little by 10%. That is not much compared with the Hang Seng Index in China. That degree of a number of large Chinese stocks is off 24% during the same period and was recently down 30%.

Some of the world’s largest companies are listed on the Hang Seng. That includes cellular service giant China Mobile (NYSE:CHL) and big oil concern PetroChina (NYSE:PTR).

The bear market in Hong Kong may be a sign of concern that a dying recovery in the West will slow down exports from China. It is additionally

a sign that inflation in the world’s most populated country may be eroding the value of equities.

The most fundamental by-product of the drop in the value of Chinese shares is that the large middle course which has developed in the country could start to feel pinched. Much of their net worth is based on stock and real estate prices. whether these consumers stop consuming, the China economy could take a surprising and profound hit to spending inside the country.

That’s a real bear market.

Douglas A. McIntyre is an editor at 247wallst.com.

Original post by Douglas McIntyre

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