China: Shanghai Index drops, is China's recovery at risk?

China’s Shanghai Index rallied 90% since November 2008 supported by the Chinese government's massive stimulus plan and a record expansion of bank lending. The Chinese government stimulus plan totaled $586 bln and was adopted to ensure the Chinese economy would grow by 8% in 2009.The Chinese central bank pumped a record amount of liquidity into China’s markets as well to try and boost GDP growth. The Shanghai Index recently experienced significant selling pressure and the stock market decline