China stock market slump

China’s stock markets are suffering their worst crash since the global financial crisis of 2008
 
SHANGHAI COMPOSITE INDEX

5,500
5,000
4,500
4,000
3,500
3,000
Jan Feb Mar Apr May Jun Jul 2015

More than $3.2 trillion wiped out in three weeks (10 times size of Greek debt mountain)

Jun 12: 5,166.35
Jul 13: 3,970.39
Jul 3: 3,686.92


Cause: Investors pour more and more into Chinese stocks, despite weak profits and economic growth 

Retail investors: Regular people, rather than traders, are biggest investors – classic “bubble” develops

Jun 12: Bubble bursts, leading to 20% drop in Shanghai Composite

Jul 9-13: Slight rally in stocks but market remains highly volatile

Source: Wire agencies