China Is Now Experiencing Its Own Version Of The 1929 Stock Market Crash

Already, there are warning signs of a slowdown, similar to those that front-ran the 1929 crash Photo: Reuters

Jeremy Warner, The Telegraph: The really worrying financial crisis is happening in China, not Greece

China looks like it is heading for its version of the 1929 stock market crash.

While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, it’s already being called China’s 1929 – the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression.

In any normal summer, a 30pc fall in the Chinese stock market – a loss of value roughly equivalent to the UK’s entire economic output last year – after an ascent which had seen share prices more than double within the space of a year would have been front page news across the globe.

The dramatic series of government interventions to stem the panic – hitherto unsuccessful, it should be added – would similarly have been up there at the top of the news agenda. Yet the pantomime of the Greek debt talks, together with the tragi-comedy of will they, won’t they leave the euro, has relegated the story to little more than a footnote - even though 940 companies, more than a third, have now suspended trading on China’s two main indices.

Previous Post: A Bigger Disaster Than Greece's Is Now Brewing In China. Its Stock Market Has Just Crashed

WNU Editor: This is a good summary on what is happening in China right now. Read it all.

Update: China stocks slump again, more companies halt trading; Hong Kong also hit -- Reuters