The new year started with sharp declines in the Chinese stock market that spooked investors around the world. But in recent weeks, conditions appear to have stabilized.
- Why the Chinese Economy Is Not Out of the Woods
- Why the Chinese Stock Market Dropped Again Today
- Will Book Cooking in China Cause Another Market Meltdown?
- China Monetary Policy Moves Continue to Fall Short
- Why the Chinese Stock Market Climbed 2% Today
- Why Is China's Stock Market Closed Today? - 9/2/15
- The Chinese and U.S. Economies Are Bubble-Thin
The Chinese stock market tumbled another 5.3% today (Monday), causing China's main index to close at a three-and-a-half-month low.
With no intervention from Chinese authorities to calm jittery markets and steady the yuan, the Shanghai Composite Index dropped 5.3% Monday to 3,016.70. Just six trading days into 2016, China's key benchmark has lost 15%.
Provincial government officials in northeastern China admitted yesterday that they have been falsifying economic data over the past few years.
Some folks are wondering if we should brace for another market meltdown.
The China monetary policy has seen numerous manipulative moves over the last several months as the government tries stimulate growth and stabilize the crashing Chinese stock markets.
So far, results have been uninspiring as China's growth continue to wane.
The Chinese stock market reversed an early loss Monday and finished up nearly 2% even as other Asian stock markets stumbled.
Investors counting on more government intervention, however, will likely get burned.
Investors around the world are glued to Chinese markets right now. On Sept. 3 and Sept. 4, they will want to know, "Why is China's stock market closed today?"
And for good reason. Dramatic volatility has plagued China since mid-June. The country's benchmark Shanghai Composite lost a massive 38% from its mid-June high through August. And because China is the world's second-largest economy, the sell-off has pummeled global markets.
The Shanghai Composite Index soared by 8% last week to its highest level since 2008 and is up about 130% over the last year.
The Shenzhen Composite Index jumped by 12% last week and is up 166% over the same period and is now trading at 66x earnings according to Bloomberg, three times the level of the Shanghai Index.
How do you spell "bubble" in Chinese?