Chinese stocks continue to tumble after global rout
25.08.2015 12:27
Chinese stocks are again down, a day after their worst plunge since 2007 caused market losses around the world.
The global sell-off was driven by fears that China's slowing growth might pull down other economies.
The benchmark Shanghai Composite fell 6% on Tuesday, after falling 8.5% on Monday - overnight, stocks in Europe and the US also saw sharp falls.
Other Asian markets opened lower on Tuesday, but recovered losses in later trading.
Investors are worried that firms and countries which rely on high demand from China - the world's second largest economy and the second largest importer of both goods and commercial services - will be affected by its slowdown.
Chinese stocks are again down, a day after their worst plunge since 2007 caused market losses around the world.
The global sell-off was driven by fears that China's slowing growth might pull down other economies.
The benchmark Shanghai Composite fell 6% on Tuesday, after falling 8.5% on Monday - overnight, stocks in Europe and the US also saw sharp falls.
Other Asian markets opened lower on Tuesday, but recovered losses in later trading.
Investors are worried that firms and countries which rely on high demand from China - the world's second largest economy and the second largest importer of both goods and commercial services - will be affected by its slowdown.
China's central bank devalued the currency, the yuan, two weeks ago, raising fresh concerns globally that its economy could be in worse shape than previously thought.
A cheaper currency lowers the price of China's exports, making them more attractive to global firms.
Elsewhere in Asia on Tuesday though, markets beat expectations, returning back to positive territory in early trade:
Hong Kong's Hang Seng was up by 2.6%
Australia's S&P ASX/200 rose by 2.2%
Japan's Nikkei 225 was 0.7% higher.
Those gains came despite the losses in Europe and the US overnight:
Wall Street's Dow Jones fell 6%, then almost recovered its losses before closing 3.6% lower.
London's FTSE 100 index closed down 4.6%.
Major markets in France and Germany down by 5.5% and 4.96% respectively.
(BBC)
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