At the end of April 2015, FXI — China’s prestigious Xinhua China 25 index, a key indicator of China’s stock market value — climbed dramatically, reaching over US$52 per share. By 5 September, the index had dropped to a low of about US$33 per share, representing the destruction of almost 40 percent of its value for the period and trillions of dollars in total. Both retail and institutional investors in China felt the bite. As financial markets react, the question remains, what is happening in China? Is the Chinese economy likely to collapse?