Monday  22 June 2015  / Hour 1, Block C: Gordon Chang, Forbes.com, in re:  Neither of us has any money invested in the Shanghai or Shenzen stock markets.  However, the military does and must be worried as the crest was achieved and it then sank – 6.3 % down on Friday, alone on Shanghai Composite. Correction or bear mkt? Fuelled by margin debt , and so extremely dangerous.  Beijing must be panicking.  "Margin debt" means borrowed money – from investment houses, friends, banks, everybody.  Whenever Chinese mil lashes out at neighbors, the neighbors re-think investing in China, send the money to India or elsewhere.  Retreat has been 152% sine last July – 929 days, according to Bloomberg.  There's no fundamental to suggest that this mkt will keep rising. Economy growing at 1% or 2% at best; trading at 84 x earnings (egad) – and he Chinese govt wants it that way.  Expect State enterprises buy their own shares. Will release more liquidity into the Chinese economy, whence it'll go not into productive capacity (no demand) but into stocks or bubble territory.  . . . Pro-Beijing legislators tried to break a quorum; it went down in an unanticipated loss. More drift: pan-democrats in HK don't have the votes to reach full success, but will do well in next elections as they’ll have critical blocking capacity Beijing can’t get what it wants at the ballot box so may try rougher tactics. 
The next few days are critical for Beijing, so expect bold government action to rescue the stock markets.  /What next in Hong Kong-Beijing democracy tussle? / Lawmakers in Hong Kong have rejected a highly controversial proposal by the government . . .   /  How the Senate Can Help Hong Kong's Democracy Campaigners / China Media: Hong Kong Opposition Is Destroyer of Democracy