China’s tumbling stock market

China’s benchmark Shanghai Composite Index has tumbled to a three-month low. More than 1,300 companies have halted trading in an effort to stop the slide, locking up $2.6 trillion or 40% of China’s market
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Shanghai Composite Index

2,000 2,500 3,000 3,500 4,000 4,500 5,000

JUL AUG SEP OCT NOV DEC 2014 JAN FEB MAR APR MAY JUN JUL 2015

Jun 12: Shanghai Index peaks at 5,166.35, up 150% in past year, powered by five-fold surge in trading on margin as people buy stocks with $355 billion of borrowed money

Jul 8, 2014: Index stands at 2,064.02

Nov 17: 2,474.01 Stock Connect scheme allows foreign investors to buy shares

Jan 7, 2015: Index reaches 3,373.95, surging 36% in two months

Apr 27: Shanghai Index breaks 4,500 ceiling

Jul 8: Index falls to 3,507.19 – 32% down from peak
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Sources: Bloomberg, Business Insider.com

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