Should the stock market crash in China and Hong Kong to cool down overheated economy and staggering inflation?

Question

I rather angry for losing my Yahoo answer while answering a question about the benefits and harms to different groups of people in Shenzhen after it recognized as a "market city". I rather concern about the staggering inflation in China and Hong kong counterpart. I am aware that many young couples with university degrees and hold good jobs in Shenzhen can not afford to buy a small flat in Shenzhen. Many educated young couples  in China and Hong Kong become mentally sick because they can't cope with the hardship of living standards of these market cities. The workload is so high and stressful in China and Hong Kong. One girl is reported dead a few days ago because of overtime work and office stress in a Japanese company in Shanghai, China.

double z · Accepted Answer

That is a sad story.

I don't think the stock markets in Hong Kong and Shanghai necessarily need to crash, but part of the answer to slowing inflation down would be to let the RMB float to its natural equilibrium value. This would make all Chinese consumers richer, because they would be able to buy more, better quality products with foreign inputs. The Chinese would not have to work so hard. They would only have to work as hard as Americans do, which is not very hard. 
The Hong Kong Dollar should also be released from its chain to the sinking USD. Again, inflation would fall if this were to happen. Hong Kong people would find themselves much richer. 

The values of the RMB and the HKD are artificially low. I think the US financial authorities and the government don't really have a firm grasp on reality, but in this case, they are basically right when they demand that China revalue the RMB.

Letting the forex market set the value for the RMB and HKD would benefit everybody in the long run, Chinese, Americans, Japanese, Europeans, Africans. It is the smart thing to do.