Biggest fall since 2007 shows a lack of confidence in Beijing’s response to ongoing stock market chaos – analysts argue.
Turmoil has returned to the Chinese stock market as shares suffered their worst fall in eight years – knocking commodity prices and fuelling jitters among investors in London.
Following three weeks of relative calm the Shanghai Composite Index plummeted – ending down 8.5% at 3725.56 – its worst fall since February 2007. Meanwhile the Shenzhen index dropped nearly 7.6% to close at 12493.05 points. Analysts predict more misery ahead for investors in the world’s second largest economy.
Xinhua – China’s official news agency commemorated the latest crash in a tweet that read: ‘The return of the debacle!’ Two-thirds of all companies listed on the Chinese mainland – or about 1,800 stocks – lost 10% of their value – the maximum daily limit – and were suspended.
The latest nosedive also stoked wider fears about China.