This is John Batchelor speaking with colleague Fraser Howie and colleague Gordon Chang about the sinking stock market, not in the US, not in Europe, but in China.

All of the recommendations by the Chinese Communist Party do something. You can't sell

short at the open, you can't sell short at the close, you can't sell short period. We're going

to look at the quant funds, we're going to look at the quant funds. We're going to discipline people who are selling.

What's happening is an exit from the Chinese stock market.

Asking Fraser Howie, what about the China Bulls? Where did they go? His answer is

metaphorical and extremely helpful. It looks like a battlefield. Here's Fraser Howie, author of Red Capitalism, once upon a time a

growing story, now a declining story, with Gordon Chang.

Look, I think it's I think the danger of it is that you can be

bullish on the stock market in the short term i.e. for a trading buy that's a very

different bet from actually saying the Chinese economy has somehow turned the corner and there's a

news glory period coming. So you're going to get rebounds and bounces and whatever. That happens

any time in the stock market. But if you just look around the financial

sector, it looks like a battlefield. There's ruins and wreckage everywhere, whether

it be in just the stock price falls or whether it be different companies getting out of China.

HSPC today announced very good profits,

but they had a whole host of number of one-off exceptional items such as losing $3 billion on a banking

stake in China.

So a lot of the hype around China has just completely dissipated and is not coming back.

More of this later. Thank you.