chineAfter four years of continuous growth, the Shanghai Composite index (SHCOMP) which had a great influence in the stimulus of the world economy has wiped out billions from worldwide investors. The Index had doubled in the last 10 months after the Chinese Government had stimulated the economy with local infrastructure at an estimate of $652 billion. The comparison of the losses can only be compared to the Athens Stock exchange (ASE) which had taken a greater hit from EU economic reforms and government spending over exceeding revenue. The outlook in 2009 predicted that China’s economy was unbeatable, due to continuous growth. Even though a number of industry specialists expected and expressed fears of the bubble. China had surpassed Germany’s growth in 2009, but now is experiencing the slowest expansion since 1990. Part of the decrease arises from the governments orders to close 1,400 companies -to close factories as new economic reforms will be implemented.