Shanghai stock market and media control

It happened again - the Shanghai stock market fell close to 9% yesterday. It was the biggest drop in 10 years. However, despite the large drop, it only erased gains made in the past 6 trading days. It was cited to be the cause in a ~3% drop in other markets around the world (notably the US).

To me, the more interesting story is how it was reported by China Daily (the English language state-controlled newspaper). The headline story on the website is "US stocks have worst day since 9/11". In very small print hidden in the middle of the page is a story about the Chinese market performance, which was much worse (Stocks nosedive after record high close). Yes, it's in English, so maybe it's tailored for a different market, but if you read the articles, it is generally friendlier to the Chinese market performance.

Quotes about the US market correction:

• "Traders' dwindling confidence was knocked down further by data showing that the economy may be decelerating more than anticipated...a day after former Federal Reserve Chairman Alan Greenspan said the United States may be headed for a recession."

• "It looks more and more like the economy is a slow growth economy"

Quotes about the Chinese market correction:

• "Tuesday's fall in the Chinese market was caused not by any bad figures, or gloomy forecast." Yesterday's correction, Dong said, was "a good thing because it will pave the way for a healthy market in the long-run. So long as China's macro-economic environment remains sound, investors still have a good chance to earn from the A-share market."

• "[T]he plunge has nothing to do with the overall economic situation."