Investors hold the latest developments on the stock exchange in Shanghai at. The scholarship is today despite new measures by the Chinese government and business to the value declines to halt 4 percent in the minus. Photo Reuters / Aly Song
In an attempt to stop the free fall of China’s stocks, the Chinese government and industry have new announced measures. It is questionable whether these measures are effective. The Chinese stock markets closed in negative territory again today.
Hundreds of Chinese companies today announced the freezing of trade in their shares. The Chinese government has companies that buy in the hands of the state entrusted shares instead of selling. Also going to spend the Chinese central bank loans which shares can be bought. It is not yet clear how much the Chinese central bank wants to invest in the markets
According to our correspondent Oscar Garschagen in China, the situation is very serious:.
“The 90 million Chinese traders have recently lost 3,200 billion dollars. That is eleven times the total debt of Greece. In that light, this is considerably worse than the situation with the Greeks. If this decline in the Chinese stock markets will continue for the Chinese economy, the world economy is going to notice. “
Today the new measures had no effect. The stock market in Shanghai fell by 6.2 percent. Even Chinese stocks on the stock exchanges in Tokyo, Hong Kong and New York are under pressure.
Chinese equities since early June has become 30 percent less worthy. The government is trying to downplay the dramatic fall in value by saying that the logical result of strong increases in China’s markets in recent years. In addition, they try all kinds of measures to stabilize the markets. Last week, the government suspended new IPOs on. Previously, the rate was already reduced and new shares were issued in an effort to turn the tide
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