There are some signs that the economy has started to stabilize. Property prices in China’s largest cities are rising after an extended slump. Industrial production edged up recently. And new bank loans were up significantly in June, adding capital for companies’ expansion.
The 30 percent drop in Chinese share prices over three weeks isn’t expected to cause major damage to the broader economy given the relatively small number of Chinese stock investors. Similarly, thestock market’s upward march since late last year had little economic effect beyond boosting the financial sector itself, economists say.
-- The Wall Street Journal on July 14