07-08-2015, 07:17 PM
http://www.theguardian.com/business/2015...s-of-panic
The Shanghai composite index closed down 5.9%, while the SCI 300 index of the biggest listed companies in Shanghai and Shenzhen lost 6.8%.
The rout spread to other world stock markets, with Hong Kong’s Hang Seng index closing almost 6% down, its biggest one-day drop for nearly seven years.
Since their June peak, Shanghai stocks have plunged 30% in the space of three weeks, having soared more than 150% in the previous 12 months as millions of private investors piled in. “It’s a stampede,” said Wang Feng, a former Wall Street trader who founded the hedge fund firm Alpha Squared Capital. “And the problem of the market is that all the players move in the same direction and are too emotional.”
The Shanghai composite index closed down 5.9%, while the SCI 300 index of the biggest listed companies in Shanghai and Shenzhen lost 6.8%.
The rout spread to other world stock markets, with Hong Kong’s Hang Seng index closing almost 6% down, its biggest one-day drop for nearly seven years.
Since their June peak, Shanghai stocks have plunged 30% in the space of three weeks, having soared more than 150% in the previous 12 months as millions of private investors piled in. “It’s a stampede,” said Wang Feng, a former Wall Street trader who founded the hedge fund firm Alpha Squared Capital. “And the problem of the market is that all the players move in the same direction and are too emotional.”