China Stock

News Article Summary about China Stock

Henry Chen

Post University

Recently there has been a hot debate in the public over the issue about why china stock market is falling. An article in the guardian commented that even by Chinese standards, the stock market crash yesterday, it can be also called very "spectacular".

The article of guidance said that were it not for China's decrease of 10% limited, might not be an average of 8.5%, instead of 18.5% or 28.5%. Article in the guardian commented that even by Chinese standards, what caused plunge in China's stock market as it was yesterday? The author of the article comments that, in fact, the question itself is missing the point. Because Beijing has all kinds of "clumsy" rescue measures have put the stock market into a casino and see what human intervention can "support" for how long?

Whatever the China stock market crash sooner or later, everyone should know that. Because China's stock price higher than the normal range. The past three weeks, Beijing deluded themselves into thinking that their rescue measures have worked, but yesterday's plunge proved Beijing's command was unable to allay people's fears.

But the biggest damage was psychological. Chinese leaders used to think that they have the ability to steer the economy towards any direction, now had to be forced to admit that their capacity is limited. This will bring China's confidence in the economy a severe blow, especially at the mouth of the economy has slowed. If the stock market continues to decline in consumer confidence, China can also have other levers to boost domestic demand, rather than government action to continue buying stocks. Finally said, if China's leaders are wise, Chinese investors should expect more volatility in the future for a few weeks.

From what has been discussed above,...