Why The Power Of Chinese Stocks Has Faded

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1 – Why the power of Chinese stocks has faded China, arguably the most robust economy in the world, shocked everyone when it announced that its key stock market had crashed. When the facts came out it became clear that this was much more than just a blip on the radar, what it actually represented was a huge plunge. This plunge sent many traders into panic mode, as many key Chinese equities were trading at levels that many thought were once implausible. Making matters worse was the fact that the crash occurred at a time when China was looking to promote the strength of Chinese stocks. There is no other way to look at the situation; the crash of Chinese stocks resembles a global issue and one that has the potential to spread to other important global markets. The image that Chinese stocks have been projecting to the world for the better part of 10 years is one of strength. But if that was truly the case, then why on August 24th did the market dip by over 1,000 points. The Chinese media dubbed it “Black Monday”, with losses being felt largely in China, it seems that the damage has began to bleed over to other countries. Looking at what triggered the downfall in the first place, most believe that it is China’s secret approach the market that has led to the trouble. While Chinese based analyst adamantly deny that such is the case, it is hard to look past the fact that rumours surrounding market fixing have become all the more prominent. Such secrecy is turning people off from

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