Friday, June 26, 2015

The Chinese Stock Market Crashed Today

(Click on Image to Enlarge)

WSJ: China Stocks Are Battered Anew

Shanghai Composite Index is on the verge of bear-market territory

SHANGHAI—China’s stock-market slump deepened, as Beijing seeks to cool a yearlong debt-fueled rally without sparking a prolonged downturn that could spill over into the broader economy.

As China’s economic growth slowed last year, policy makers allowed brokers to lend billions of dollars to mom-and-pop investors, helping to set off a bull market. Now, fearing investors are taking on too much risk, authorities are trying to let some of the air out of the bubble.

The Shanghai Composite Index fell 7.4% Friday and is off 19% since hitting a 52-week high on June 12, a decline that has wiped away $1.25 trillion in market capitalization, an amount roughly equal to the size of Mexico’s economy.

WNU Editor: This could get messy very quickly. Here is an easy prediction .... there are going to be a lot of anxious people on Monday.

More News On China's Stock Market Crash Today

China stocks plunge over 7 percent, divided over outlook -- Reuters
China's Stock Market Plunges -- NYT
Ugly day for China markets: Stocks nosedive -- CNN
China stocks slump 7% as bull run stalls -- CNBC
China's stock market takes a dive Friday -- CSM
Chinese Stock Plunge Leaves State Media Speechless -- Bloomberg
'Rats leaving a sinking ship' as China's equity bubble implodes -- The Telegraph
China Stocks Plunge: 3 Risks to Watch -- Barron's
Why Chinese Stocks Just Took a Massive Nosedive -- Stephen Gandel, Time/Fortune

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