China’s stock market has gone into meltdown over the past few weeks, with its value dropping by around a third after months of stellar gains. Until recently, the collapse in stock prices was seen as a normal correction in an overheated bull market, but experts are now talking of looming disaster in the world’s most populous country.
However, after a drop of 8% on 8 July – which analysts have dubbed ‘Black Wednesday’ – Chinese authorities have taken drastic steps to shore up the market. The measures included a ban on anyone holding more than 5% of a company’s stock from selling in the next six months. A plethora of companies have suspended the trading of their shares. These and other measures have staunched the market’s wounds, but there is still profound concern that the rout may resume.
Log in or register for a free trial to continue reading this article
Already a subscriber?
If you already have a subscription, sign in to continue reading this article.Sign in
Not a subscriber?
To access our premium content, you or your organisation must have a paid subscription. Sign up for free trial access to demo this service. Alternatively, please call +44 (0)20 3004 6203 and one of our representatives would be happy to walk you through the service.Sign up