China Equities Shut Out of MSCI for a Third Time

The video discusses the exclusion of certain markets from indices due to lack of free market principles, using the Shanghai Composite as an example. It highlights the role of fundamentals in market reactions, drawing parallels with the dot-com bubble. The volatility of markets and government interventions, particularly in China, are explored. The paradox of China's desire for free markets while maintaining control is examined. Finally, the video addresses currency valuation issues and the interventions by the People's Bank of China.

In what ways does the Chinese government attempt to balance free markets and volatility?

What are the implications of the yuan being overvalued in the context of the current economic situation?