Investors around the world are worried about a stock market crash in China. But instead of panicking, there's a way you can profit from China's stock market crash.
The Shanghai Composite Index fell 8.5% today (Monday) in the largest one-day drop for Chinese stocks since Feb. 27, 2007. The index is now down more than 27% from early June.
Here's how you can profit from China's stock market crash today...
China's stock market has been extremely volatile since mid-June.
And now that dip has prompted government intervention. Additional measures are likely if the whiplash-like moves continue.
While much of the world's focus has been on the crisis in Greece, China's stock market crash brewing to the east is more likely to ripple global markets. Value of shares in the world's largest economy plummeted more than 30% in the last few weeks alone, after having skyrocketed 150% in little more than a year.
"Hundreds of millions of inexperienced Chinese investors, many of whom have never owned securities before and who have never experienced anything other than rising markets, are panicking. Effectively, they've all hit the sell button at once."
Exactly how bad is the China stock market crash?
These four charts help put the country's major market sell-off into perspective...
Millions of investors around the world are watching China's stock markets with bated breath, given that the Shanghai and Shenzhen bourses have lost more than $3 trillion in market capitalization between them over the past three weeks - a real money amount that's greater than Brazil's annual output or Spain's entire stock market, according to Bloomberg.
Bluntly speaking, they're hoping the "bubble" won't pop.
China's stock market crash today (Monday) was the worst since June 10, 2008. Chinese stocks fell 7.7% after regulators barred three firms from trading.
The financials sub-index tumbled 9.6%. All 14 banking stocks slumped by their 10% daily limit.
