The Chinese Stock Market Crash.docVIP

The Chinese Stock Market Crash 　　 The Big Crash 　　China’s stock market has been on a wild ride in recent months. It shot way up and many Chinese investors jumped in， hoping to get rich quickly. 　　However， the Chinese stock market has tumbled since June 12， 2015. 　　The Shanghai Composite -- the world’s third largest stock exchange if you add up the value of its companies -- has lost 24% since June 12， putting it officially in bear market territory. 　　By 8?C9 July 2015， the Shanghai stock market had fallen 30% over three weeks as 1，400 companies， or more than half listed， file for a trading halt in an attempt to prevent further losses. Values of Chinese stock markets continued to drop despite efforts by the government to reduce the fall. 　　The bears are growling even louder on the smaller Shenzhen Composite， down roughly 30% in the same period. 　　By the end of July 7th trading in over 90% of the 2，774 shares listed on Chinese exchanges was suspended or halted. Shares have fallen by a third in less than a month， wiping out some $3.5 trillion in wealth， more than the total value of India’s stock market. 　　In the year leading up to the crash， enthusiastic individual investors continued inflating the stock market bubble through investment in stocks， exceeding the rate of economic growth and profits of the companies they were investing in. Investors faced margin calls on their stocks， and many were forced to sell off shares in droves， precipitating the crash. 　　 The Government has launched a “Patriotic Fight” to save Its Stock Market 　　For China， this isn’t just a financial crisis， it’s a political one. That’s why the Chinese government is doing everything it can to try to stop the bleeding. 　　China’s main stock markets are in meltdown mode. Since June 12， the Shanghai Composite has lost an unnerving 32%. The Shenzhen market， which has more tech companies and is often compared to America’s Nasdaq index， is down 41% over the same period. 　　On Wednesday， Chin