Lessons of China's Stock Market Plunge

HONG KONG – The plunge in China’s stock markets, which has sent shockwaves reverberating around the world, has amounted to a real-time stress test for the country. The bears, who have been predicting the Chinese economy’s downfall, are now consumed with schadenfreude. The bulls hold that, no matter how violent the stock-market gyrations may be, China’s economic success story remains intact. But, at this point, no outcome is certain.