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Yes, the Chinese market is very much short of liquidity, as is the Indian market. Now, I know precisely how you are going to respond, but I challenge you to think much more granularly than you are about what I mean by "liquidity." It is not a market-based phenomenon. Liquidity matters on a security-by-security basis.

Every regulator of every highly developed market on the planet understands this basic tenet. I dare say even the Pakistani regulators get it now, since their decision to ban short selling on the Karachi Stock Exchange had the exact opposite effect of what they'd hoped. Liquidity evaporated, and participants trusted the market less. I don't want to appeal to authority here, but before you say "I don't agree," it is incumbent upon you to think through why this might be.

Pardon me if I end my participation here. I'm whipped, and want little more than to hang out with my 3-year old on a beautiful day.

Bill Mann
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