Monday, July 27, 2015

The Chinese Stock Market Has Crashed Again



The Guardian: China stock market hit by biggest one-day fall since 2007

Move to prop up index and halt sell-off stops abruptly, throwing doubt on Beijing’s plan to stave off deeper crash.

Chinese shares has tumbled more than 8% after an unprecedented state rescue effort to prop up valuations abruptly stopped, raising doubts about the viability of Beijing’s plan to stave off a deeper crash.

Major indexes had their largest one-day drop since 2007, shattering three weeks of relative calm in China’s volatile stock markets since Beijing moved to arrest a slump that started in mid-June.

“The lesson from China’s last equity bubble is that, once sentiment has soured, policy interventions aimed at shoring up prices have only a short-lived effect,” said Capital Economics analysts.

Update: Stocks off lows amid China, commodity slide -- CNBC

WNU Editor: A world recession around the corner?

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