WWN - The eyes of the public and investors are now focused on the collapse of the Greek drama. However, investors should be more worried about what is happening in a country with a population of around 1.4 billion people in the world's second largest GDP, namely China.
China's stock market ranging from The Shanghai Stock Exchange Composite Index and the Shenzhen Stock Exchange Composite Index merosottajam reached 30 percent of its highest rate. This happens because of concerns investors in the shares of Chinese companies that are experiencing a bubble or a bubble. The Chinese government has even issued some policies to reduce the stock market crash. However, the government is actually behind the attack itself.
Regulators on Sunday said that they would provide more capital to the entity and allow to borrow money to buy more margin or practice to borrow money to buy shares. Buy this margin is very risky.
The experts said, China's rise in the stock market at the beginning of this year because many investors to buy stocks with debt. And, when the stock first began to fall last month, many investors sell their shares quickly to repay debt. It is to be triggered sharp stock market slump in China.
Even this condition is estimated to be worse because investors realize that China's economic slowdown erodes corporate profits.
"China's stock market is not supported by the fundamentals of the country. On the contrary, the market is appointed by government loans and manipulation," said the founder of Pento Portfolio Strategies, Michael Pento.
Rescue the stock market also performed by the Chinese broker to buy stock in the Shanghai Composite. However, it is believed will lead to new problems.
Assistant professor of finance from Warwick Business School in the UK, Lei Mao claimed worried about Chinese policies that could inflating the value of large enterprises at the expense of many small companies. Government policies were not very effective, it is seen on the Shanghai Composite are only able to rise no more than 2 percent. While the Shenzhen Composite remained down nearly 3 percent.
China's stock market sank rapidly for some time. Is this a sign of economic crisis and chaos like in 2008?
China is currently the second largest trading partner for Europe and the United States. In addition, China is is one of the world's largest commodities consumer. Decline in stock prices will certainly affect the world economy directly.
World oil prices fell on Monday and many blamed Greece and the decline in the Euro exchange rate. Not many think that this condition occurs due to the conditions in China.
"Look at the stories written about the decline in world oil prices today, and they will talk about how oil demand fell in Greece. I have to think again, this demand for Greece? I think Chinese demand," said Director of EverBank Global markets, Chuck Butler in his report ,
Seeing the condition of China today, according to Chuck Greece you can ignore completely. Do not get too caught up with the news in Europe. China has more influence on the global economy and could fuel the crisis.
China's stock market ranging from The Shanghai Stock Exchange Composite Index and the Shenzhen Stock Exchange Composite Index merosottajam reached 30 percent of its highest rate. This happens because of concerns investors in the shares of Chinese companies that are experiencing a bubble or a bubble. The Chinese government has even issued some policies to reduce the stock market crash. However, the government is actually behind the attack itself.
Regulators on Sunday said that they would provide more capital to the entity and allow to borrow money to buy more margin or practice to borrow money to buy shares. Buy this margin is very risky.
The experts said, China's rise in the stock market at the beginning of this year because many investors to buy stocks with debt. And, when the stock first began to fall last month, many investors sell their shares quickly to repay debt. It is to be triggered sharp stock market slump in China.
Even this condition is estimated to be worse because investors realize that China's economic slowdown erodes corporate profits.
"China's stock market is not supported by the fundamentals of the country. On the contrary, the market is appointed by government loans and manipulation," said the founder of Pento Portfolio Strategies, Michael Pento.
Rescue the stock market also performed by the Chinese broker to buy stock in the Shanghai Composite. However, it is believed will lead to new problems.
Assistant professor of finance from Warwick Business School in the UK, Lei Mao claimed worried about Chinese policies that could inflating the value of large enterprises at the expense of many small companies. Government policies were not very effective, it is seen on the Shanghai Composite are only able to rise no more than 2 percent. While the Shenzhen Composite remained down nearly 3 percent.
China's stock market sank rapidly for some time. Is this a sign of economic crisis and chaos like in 2008?
China is currently the second largest trading partner for Europe and the United States. In addition, China is is one of the world's largest commodities consumer. Decline in stock prices will certainly affect the world economy directly.
World oil prices fell on Monday and many blamed Greece and the decline in the Euro exchange rate. Not many think that this condition occurs due to the conditions in China.
"Look at the stories written about the decline in world oil prices today, and they will talk about how oil demand fell in Greece. I have to think again, this demand for Greece? I think Chinese demand," said Director of EverBank Global markets, Chuck Butler in his report ,
Seeing the condition of China today, according to Chuck Greece you can ignore completely. Do not get too caught up with the news in Europe. China has more influence on the global economy and could fuel the crisis.
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