CHINA’s STOCK MARKET CRASH ON 8TH JULY
Stock markets in China are tumbling. In the middle of June, China’s stock market had been among the highest performing in the world and had hit a seven-year peak. In fact, it had been performing that well that many were drawn into investing in something like these Oneweb Aktien (Oneweb Shares) in the US stock market because of how much they were surprised by these figures. It’s truly astonishing, especially when you sit back and admire these figures for yourself. The Shanghai, one of the biggest stock exchanges of the Chinese market has surged more than 120% in the last 12 months.
But over the past few months, china’s stock market is plunging and the Chinese government is panicking. Over the past few weeks, it has employed a number of extraordinary measures to try to halt the market slide, but all goes in vain.
On Wednesday, china’s market completely entered into bear market territory with the benchmark Shanghai Composite index fell into another 5.9 percent, bringing the market total losses to 32 percent in less than a month. Shenzen composite index, another main stock exchange of China also dropped 40 percent.
The central bank’s unexpected interest rate cut on Wednesday also failed to lift the market concern over the investor’s debt levels. Moreover, the lingering uncertainty on the Greece front also kept the market participants on the edge. It seems that knee-jerk frustration over Greece is roiling the market globally.
Volatility in the Chinese market is appeared to be a signal of tug war between local investors enthused by the Bank interest rate cut, an attempt to stop the marker rout after a sudden drop, and others who heavily borrowed to purchase stocks during a year-long boom and have been caught out by the market’s decline.
On 8th July, Wednesday, the situation got worst when China’s tumbling stock market showed signs of seizing up due to heavy sell-off stocks. Companies scrambled to escape the rout by having their shares suspended and indexes plunged after the securities regulators warned of panic sentiments gripping investors.
Around more than 500 listed companies announced trading halts on the Shanghai and Shenzhen exchanges on Wednesday, taking total suspension to about 1300-45 percent of the market or roughly $2.4 trillion worth of stock as companies scamper to sit out the carnage.
If the situation has not controlled, then globally there is a fear that China’s market turmoil may destabilised the china’s economy which is now a bigger risk then the Greece crisis.
Penned by Suhanee Shome
