How China's Stock Plunge Is (And Isn't) Like The 2008 Financial Crisis

Published July 3, 2015 at 1:33 PM EDT

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An investor walks past a share prices board at a security firm in Hangzhou, eastern China's Zhejiang province on June 30, 2015. (STR/AFP/Getty Images)

In China today, stock markets continued what is now an unprecedented economic slide. In the three weeks since the Shanghai Composite Index hit a seven-year high, the market has lost 30 percent. That’s the sharpest decline over that time period since 1992.

While some experts point to the loss as the inevitable burst of the Chinese economic bubble, officials in China suspect foreign manipulation.

Oxford and Peking University professor Li Jin tells Here & Now‘s Meghna Chakrabarti that the cause of the slide has echoes of the 2008 financial crisis in the U.S., but that the global impact is likely to be less disastrous.

Guest

Li Jin, professor of finance at Oxford University and Peking University in Beijing.