"Chinese Chaos Worse Than Greece"
A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder.
“State-owned newspapers have used their strongest language yet, telling people ‘not to lose their minds’ and ‘not to bury themselves in horror and anxiety’. [Our] positive measures will take time to produce results,” writes IG Markets.
“If China does not find support today, the disorder could be monstrous.”
In an extraordinary move, the People’s Bank of China has begun lending money to investors to buy shares in the flailing market.
The Wall Street Journal reports this “liquidity assistance” will be provided to the regulator-owned China Securities Finance Corp, which will lend the money to brokerages, which will in turn lend to investors.
The dramatic intervention marks the first time funds from the central bank have been directed anywhere other than the banks, signalling serious concern from authorities about the crisis.
Chinese firms race to freeze stock trades3:05am EDT - 00:57HOW DO YOU SAY "PANIC" IN CHINESE?
An unprecedented number of Chinese listed companies have applied for their companies to halt trading in the stock market as a way to stop their share prices from plunging in the current market rout.
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