The Shanghai stock market will be closed Thursday and Friday as China commemorates the 70th anniversary of the end of World War II.
That is probably welcome news for investors around the world in the wake of a global equities selloff sparked by weak Chinese economic data.
But heedless of mounting worries about its economy, or perhaps in an effort to divert attention, the Chinese government is going all out to mark the occasion in style. In addition to declaring Thursday a national holiday, there will be a military parade through Tiananmen Square with foreign dignitaries in attendance.
Once the parade passes by, there is likely to be more pain in store for China. Goldman Sachs on Monday said the Chinese economy is estimated to have shrank in July and is likely to remain weak in August and September, in part due to Beijing’s move to restrict construction and production during World War II commemoration ceremonies.