To be fair, the Shanghai Stock Exchange Composite Index still shows that the value is on par with March earlier this year, after losing 1/3 of value. How did they gain 1/3 just in 3 months is a bit beyond belief, but looks like the bubble merely corrected itself quickly. Hopefully this crash will also correct the bubble in the US housing market where foreign capital comes in as investors to compete with the local working people who just wanted a home for themselves.
I've been analyzing the housing market in my neighborhood because my old landlord just sold my unit to an investor who asks for the rent increase from $1900 to $2500. I realized that at the price the investors are offering, they can make only 2.5% APY, rarely 3% APY, at market rent, if they put down by cash which is rare. Most investors still need to borrow from the bank at 3.75% APR, so they lose money. In my new landlord's case, the rent increase is the amount he needed in order to make up for the loss. The foreign investors give the impression they bring in cash because they can't get a US mortgage, so they have to get mortgage from their home country. It's not as rosy (or gleam) as people think, depending on your perspective. I've now seen units on the market ripe for under asking.