Almost 35% of the values lost since June, about 3000 billion dollars. Yesterday, the Shanghai Composite 5.9%. More than the Greek crisis, the International Community is watching to The dramatic sell-off in China’s main stock market . Shanghai and Shenzhen grew about 150% since June 2015. Then, the bubble.
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After this opening, other 500 listed companies in China have suspended their negotiations, bringing the total to 1,476 titles still, more than 50% of the total. The China Securities Regulatory Commission, the agency in charge of monitoring stock market, talks about”panic among investors.” Meanwhile, this fall is compared to Wall Street in 1929. The effects are in underway. Yesterday, Nikkei lost 3,1%, Hong Kong closed down 5,8%.
Communist Party is the real loser. Its promises of growth have not been kept. And the creation of a dedicated fund of $ 19 billion has been useless. The government would want to relieve the real economy as stock market losses hit consumer spending. CITIC Securities International, Chinese broker company, has clamored for cutting interest rates to limit the damage to the outbreak of this stock market bubble.
Giacomo Pratali
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