Lu Yushan, a retired salesman, has advice for investors in China's slumping stock market: Sell. Lu's shares soared over the past decade. But the 65-year-old, driven away by plunging prices, insider trading scandals, a cooling economy and a tariff war with Washington. "Investors should get out."
The benchmark Shanghai Composite Index sank 30 percent from January through mid-October. Prices fell so far that China as No. 2 market by share value dropped to third place behind Japan.
The slump adds to challenges for communist leaders as they try to shore up economic growth and carry on a tariff war with President Donald Trump over Beijing's technology policy. It also puts a kink in plans for state industry to use share sales to pay down a multibillion-dollar mountain of debt and modernize.
China must stop theft of intellectual property, balance fair trade, and reduce the hostility and military buildup in the South China Sea.
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