Publication

This paper analyzes the mid-2015 stock market collapse in China and the measures taken by the Chinese authorities to prop the market up as well as the potential consequences of these. The author also reviews the decision of the People’s Bank of China (PBoC) to put the renminbi (RMB) on a course towards depreciation in the quest of both more exchange-rate flexibility and to regain external competitiveness for an economy that is rapidly decelerating.