In my opinion the China meltdown could spread to it’s highly inflated real estate market and beyond in the Chinese economy (consumption could plummet), as margin calls would eventually force fire sales in real estate and a general pull back in all sorts of transactions.  While real estate is not a liquid asset, folks who have incurred large losses and margin calls would eventually need to sell in order to raise cash and replenish their bank accounts.  Tough to know how much longer the crash in the Chinese market will go on, however, the government is fully engaged, which heightens the awareness of how critical it has gotten.  The Chinese Government is beginning to pull all the stops to reign in the panic.

However, as we know governments are the ultimate backstop for all deep crisis, I expect that at some point in time, bargain hunters will come in droves and put a firm floor underneath it, they just need a strong signal that the Chinese government means business.

Re ALU:  I have another 2K share limit order at the low 3.30s