Chinese stocks plunge almost 6 percent!
BEIJING, China - August 17 2009 - China’s benchmark stock index fell almost 6% on Monday, dropping through the 3,000-point level and extending two weeks of falling prices that have wiped out two months of gains.
The drop was the largest in percentage terms in nine months and appears to reflect concern over government efforts to rein in bank lending that has been diverted to the country’s stock and property markets amid an unprecedented credit boom.
Equity markets fell sharply on Monday after fears of overheating in China triggered one of the country’s largest one-day declines, while a recent fall in U.S. consumer confidence was underlined by poor sales from Lowe’s.
The losses on equity markets were matched by falling commodity prices, driving investors from risky assets into the havens of dollar, yen and government bonds.
U.S. stocks joined the slump in global equities on Monday morning after heavy overnight losses in China translated into sharp selling on Wall Street, dragging the benchmark S&P 500 index below 1,000.
Fears over the weakness of the U.S. consumer triggered by weak retail sales and consumer confidence last week were exacerbated by worries that China was slowing the pace of its commodity buying and the rate of cheap lending to its citizens.
The drop was the largest in percentage terms in nine months and appears to reflect concern over government efforts to rein in bank lending that has been diverted to the country’s stock and property markets amid an unprecedented credit boom.
Equity markets fell sharply on Monday after fears of overheating in China triggered one of the country’s largest one-day declines, while a recent fall in U.S. consumer confidence was underlined by poor sales from Lowe’s.
The losses on equity markets were matched by falling commodity prices, driving investors from risky assets into the havens of dollar, yen and government bonds.
U.S. stocks joined the slump in global equities on Monday morning after heavy overnight losses in China translated into sharp selling on Wall Street, dragging the benchmark S&P 500 index below 1,000.
Fears over the weakness of the U.S. consumer triggered by weak retail sales and consumer confidence last week were exacerbated by worries that China was slowing the pace of its commodity buying and the rate of cheap lending to its citizens.
