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China stock market continues to tumble

China stock market continues to tumble

China stock market continues to tumble

Although Greek government-debt crisis is creating distress and unease, there is a possibility that China’s stock market might crash.

The Chinese stock market collapsed at an exceptionally rapid pace since June 12, losing nearly US$3 trillion, which means China has lost more than 20 percent in dumbfounded volatility.

On June 1, China’s security regulator tries to reassure panicky investors by relaxing rules on borrowing money for stock market speculation, letting brokerages set their own tolerance level on margin calls and allowing the roll-over of margin lending contracts. However, it did not provide immediate relief.

China’s main stock benchmark continuously to plunge more than 5 percent on Friday, as Chinese government’s implementation of stabilizing measures failed to restore investors’ confidence.

Frederic Neumann, Co-Head of Asian Economic Research at HSBC Holdings, said although China’s financial market is more encapsulated but if the Chinese stock market crashes, it will affect the domestic market and hinder the global economic development.

Updated : 2021-09-18 21:04 GMT+08:00