China Stock Markets: Sharpest Dive Since 2007Posted: August 24, 2015
China’s stock markets suffered their sharpest daily fall since the global financial crisis on Monday, with the government withholding support at a time when investors world-wide have been rattled by volatile selling in China and a slowdown in its economy. As WSJ’s Chao Deng and Anjani Trivedi report:
The Shanghai Composite Index’s loss of 8.5% by Monday’s close was its largest daily percentage decline since February 2007. Today’s performance reminded investors of an 8.5% drop on July 27, when worries mounted that authorities were pulling back on measures to prop up the market.
Monday’s performance erased Shanghai’s gains for the year, reverberated across Asia and weighed on global markets at an inopportune time for China. Next week, it will host world leaders for a memorial parade meant to show off its military power and increasing clout on the global stage. In addition, Chinese President Xi Jinping is slated to visit the U.S. next month. But a global selloff was already gathering pace by late afternoon in Asia, with European stocks and U.S. stock futures falling sharply.
At the heart of the selloff is the concern that the once-high flying Chinese economy may be slowing down dramatically, which has triggered steep losses in global stock markets, commodities and emerging markets….(read more)
- Stocks, oil tumble as grim China PMI sparks growth fears (scooprocket.com)
- Australia shares on course for worst month since height of financial crisis (theguardian.com)
- Putting China’s Stock Market Into Perspective (forbes.com)
- At the open: TSX, Dow bloodied as global selloff intensifies (theglobeandmail.com)
- CHINA – China, industrial production falls at the fastest pace in last six years (asianews.it)
- Fear of a currency war grows (japantimes.co.jp)