China (and EU) should stay on guard against Wall Street

After 20 years of development, China's stock market has become the second largest in the world in terms of market capitalization and is expected to play an important role in facilitating China's transformation from the world's leading manufacturer and trader into a financial and economic power. However, China has to keep alert against the Wall Street capital raiders to secure the stability of its stock market and investors — particularly smaller ones. 

Goldman Sachs, an international investment bank, was thought to be involved in the largest slump of China's stock market this year. Before the opening hour of stock exchanges that day, it advised its clients in an email to sell all their Chinese shares.

However, not long before that, Goldman Sachs issued a report hailing the rosy prospects of investing in China's stock market. China's stock market had its "worst day of the year" on Nov. 12, when it dove 5 percent. Besides market adjustment, rumors of a stamp tax hike were also to blame.

The commentary even called for a "thorough investigation" into the behavior of the investment bank to see whether they intended to manipulate the market for their own interests.  It accused the Wall Street giants, who were responsible for the global financial crisis in 2008, of aggressively seeking chances to profit on emerging markets by distorting the markets there.  

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