There has been a great deal of brouhaha about the risks of a collapse in the Chinese economic growth over the past couple of months because of the dramatic fall in Chinese stock markets. The truth is that movement in the Chinese stock market has never been closely related to China’s economic growth rate performance. In periods of strong growth, the stock market was stagnant. As growth fell back, the stock market surged. The stock market seemed to play a game all of its own, though over the long term the growth of equity value must come to reflect the productive capacity of the Chinese economy.