China's struggling middle class deserves better

CHINESE stock markets are reeling from instability. "Circuit breakers" halted trading activity after steep losses, angering investors and embarrassing government regulators. Jilted traders played cards in public trading halls while anxiety swirled in global markets. In a country where the two major stock exchanges are less than 30 years old, volatility is no surprise. However, it raises deeper concerns about the mobility of China's middle-class investors and their role in the country's longer-term development.

Since the mid-20th century, the developing world has watched Western households build their wealth through property and stocks. China's economic growth is now enabling new generations of consumers to do the same. However, their investment options are comparably less attractive. The Chinese stock market is immature by Western standards and suffers from a lack of policy clarity, while uncertainty about property rights and market instability has se…