Has President Xi Jinping lost control of the markets?

This year stock markets in China and Hong Kong have had a rough ride so far. Even as America’s stock market is reaching record highs, stock markets in China and Hong Kong lost US$1.5trn in January alone. Many investors in China are expressing their frustration on Chinese social media .Chinese politicians are getting nervous but it does not seem that a clear solution is available.

The decline in the China stock market is a sign of fundamental problems: foreign investors and local Chinese investors do not trust China's government anymore,  This could have major implications for China, the China stock market, the China real estate market  but potentially also the US real estate market.

Read all the details in The Economist.