Again sharp fall in China’s stock markets – tagesschau.de

After three weeks recovery there in China’s stock markets again significant losses – the key indices crash. So the Shanghai Composite Index lost 8.5 percent. This is the biggest day loss in eight years.

By Axel Dorloff, ARD Radio Studio Beijing

Again a violent price decline on China’s stock markets: this time it was the biggest one-day loss since February 2007. In the opinion of analysts, the last disappointing economic data from China are responsible. Thus the fear of traders had been stirred up against an economic faintness of the People’s Republic on.

The Chinese government said earlier that the profits of large industrial companies compared in June with the previous year by 0, 3 per cent were declined. In addition, China’s industry, according to Markit Purchasing Managers’ Index in July shrunk so much as the past 15 months no longer.

The

dramatic price decline in China’s stock market is the first major setback since the government stabilization measures , The Beijing government had exempted two weeks ago around half of all listed shares from trading and unceremoniously canceled new IPOs. Large dealers could no longer sell stocks and mutual fund companies and state corporations were sentenced to in a big way to buy stocks to pump money into the market.

After a veritable stock market boom, stock prices were dropped dramatically in China since mid-June. The courses in Shanghai forfeited more than 30 percent of its value. Several trillion in capital were destroyed

.