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This passage sounds quite optimistic. I think it failed to consider the the economic and financial status in other countries like US and Europe when the author analised the China's future. If the gloomy of the global economy continues, how can China stay healthy?
"The dump in stock market is seen as a negative overreaction on policy and is unlikely to last long." The drop of stock market is not simply because of the policy, the bearish view on US and European Economy is still an important trigger. As China exports a lot to these countries, if these countries fail to grow and stay in debt crisis, how can China survive?
If we check the daily global stock market indeces, the Asian market is heavily affected by the indeces in developed countries.
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