Following China’s “Black Monday,” which saw the Shanghai Composite Index fall by a whopping 8.5 percent, today the market dropped by a further 8 percent before closing slightly higher to cap out the losses at 7.6 percent.
After opening at 3,209.91, the index dropped by 244.94 points to close out at 2,964.97. The continuing losses leave the market down by approximately 57 percent since trouble struck China stocks last month.
Even after the losses sustained over the past month, remarkably the market is still up by around 35 percent compared to a year ago, illustrating the enormity of the bubble which yesterday burst so violently it impacted markets around the globe.
While the Chinese government appears to have thrown in the towel with regards to propping up the stock market, authorities in Beijing just moments ago announced a cut in interest rates which has seen European markets bounce back.
But while global markets begin to shrug off yesterday’s losses, Chinese investors are left counting the cost of the dramatic falls, and of course sharing their dissatisfaction on social media.
“The stocks I bought have dropped so cruelly,” one Weibo user posted. “In a previous session, I made 200,000 yuan. Because I was greedy I wanted to make more, like a snake trying to eat an elephant. I watched my money, everything that I made and some of my original investment disappear. My heart is bleeding! The only lucky thing is that I was able to pull out most of the original funds in time.”
Previously on Shanghaiist:
Biggest one-day fall in China stocks since 2007 leads to global sell-off
Almost a quarter of Chinese investors suffer more than 50% losses in recent stock market slump, say survey
By Dominic Jackson
[Image via Yahoo Finance]