The Telegraph: China losing control as stocks crash despite emergency measures
Margin debt on the Chinese stock market has reached is $1.2 trillion. 'We suspect that it’s a matter of time before banks may have to face the music,' Bank of America says.
Chinese equities have suffered the sharpest one-day crash in eight years, sending powerful tremors through global commodity markets and smashing currencies across East Asia, Latin America and Africa.
The Shanghai Composite index fell 8.5pc despite emergency measures to shore up the market, with a roster of the biggest blue-chip companies down by the maximum daily limit of 10pc. The mood was further soured by news that corporated profits in China are now contracting in absolute terms, falling 0.3pc over the past year.
The violence of the moves unnerved investors worldwide, stirring fears that the Communist Party may be losing control after stoking a series of epic bubbles in property, corporate investment and equities to keep up the blistering pace of economic growth.
WNU Editor: Everyone knew that this bubble was going to burst one day .... and now that it has everyone is now concerned on when will this situation stabilize .... or will it get worse. My prediction .... its going to get worse.
More News On China's Stock Market Crash
China shares continue to slide after historic sell-off -- BBC
China Shares Seesaw in Volatile Trading -- WSJ
China shares gyrate as Beijing scrambles to calm markets -- Reuters
China's stock market continues to free fall -- CNN
China Stocks Extend Rout as Traders Lose Faith in State Support -- Bloomberg
China's stock market is falling again, and it's a huge problem for the government -- VOX
China stock fall: Continued correction or start of economic meltdown? -- ABC News (Australia)
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