There is a theory that China stock market will crash after olympic game, the main thinking behind it, is Chinese government put so much efforts in olympic game to show off the world that China is a powerful country, a lot of “face” issues. They will keep the market float until after olympic game.
After that a major slow down on money investment in public construction, such as transportations, roads, and housing.
Also, the shaky financial system in China already creates a bubble, people lost rational thinkings, keep driving up the bubble. Soon or later something going to trigger the market meltdown. China will experience what America has been through. A major correction so that a new system can come up.
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