The plunge in China's equities followed last week's losses of 11 percent, and hammered stock prices across Asia, as fears grew that a slowdown in China could send the rest of the world into a recession.
Hong Kong's benchmark Hang Seng Index dropped more than four percent in the first few minutes of trade, the Australian market dived three percent, while Japanese and Taiwanese markets were routed more than two percent.
More than $5 trillion has been wiped off the value of global equities markets since China's shock devaluation of the yuan on August 11 sparked fears the world's second-largest economy is weaker than thought.
Al Jazeera's Adrian Brown, reporting from Beijing, said "you don't need to be an economist to understand that there are some very strange things happening in the Chinese economy".
He said all of the measures taken by the Chinese government, including spending billions on share buy-backs, and Sunday's announcement that it would invest state pensions in the market to offset the declines, were not working.
"Billions of dollars of state workers' money are now being used to prop up the market, but not only is the market falling, China's economy is also slowing," our correspondent said.
"China was seen as the engine of global growth but now the outside world is beginning to understand that it is slowing down."
Our correspondent said malaise on the markets could continue as investors awaited US GDP figures set for release this week, and a decision on whether the US Federal Reserve would lift interest rates.
Falls follow Wall Street
Monday's falls followed heavy falls on Wall Street on Friday, with the Dow Jones Industrial Average posting its worst single-day session in four years and all benchmark indices losing more than three percent.
"The market is going to drop further. It's normal as the markets across the whole world are falling," Qian Qimin, an analyst from Shenwan Hongyuan, told AFP.
"Financial risk will likely rise quickly, dampening market sentiment," Ken Chen, KGI Securities analyst, told Bloomberg News.
"Government intervention won't be able to stop the market correction in the long run."
Source: Al Jazeera and agencies
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Stock markets in New York, London, Paris and Frankfurt have fallen sharply as fears of a Chinese economic slowdown continue to haunt investors...
ReplyDeleteWall Street's Dow Jones was nearly 6% lower in early trading after plunges across Europe.
London's FTSE 100 index was down by more than 6% in afternoon trade, with major markets in France and Germany down by 7% and 6% respectively.
The sell-off hit stocks across almost every sector in New York.
The Dow Jones fell below 16,000 for the first time since February 2014, while the technology-heavy Nasdaq index was trading more than 8% lower in the opening minutes.
Shares in Asia were hit overnight, with the Shanghai Composite in China closing down 8.5%, its worst close since 2007.
Global investors worry about growth in the world's second largest economy.....BBC
Les marchés financiers mondiaux ont été plongés dans la panique et dans l’inquiétude provoquée par la situation actuelle de l’économie chinoise....
ReplyDeleteLes experts cités par les médias occidentaux estiment que les participants des marchés doivent se préparer à un scénario négatif.
"Lundi noir" et dégringolade des prix des matières premières
La bourse de Shanghai, qui s'est effondrée ce lundi à 8,5 % en dépit de la décision des autorités de rassurer les investisseurs, a entraîné dans sa chute nombre de places boursières mondiales. Les marchés ont subi une vague de vente chaotique d'actifs. Cependant, le pire pourrait encore venir, estiment les analystes financiers.
fr.sputniknews.com
24/8/15