Shares of Chinese stock market experienced the largest one-day decline on Monday from 2007, after measures Beijing ovlyadyavaneto the collapse not work and increased worries that the second largest economy in the world is slowing faster than expected . The indices of the two major exchanges in China fell by 7-8%, as the negative effect be transferred to other major asian markets in Hong Kong, Tokyo, Seoul and Taiwan. Following the trend of Asian markets, the main indexes of the major stock exchanges in Europe also fell sharply in early trade
Last week the indices of stock exchanges in Shanghai and Shenzhen lost 11%, and this week began with the cancellation of growth this year. The main reason is that investors had expected the central bank to reduce its requirements for bank reserves. So they would release funds to pour liquidity to raise stock prices and help the slowdown in industrial sector of China.
But this did not happen and the only way was to permit pension funds to China may purchase securities – news that was already consumed by the markets. On Monday, shares of only 11 companies rose, while nearly 80% of the traded in Shanghai and Shenzhen companies were depreciated on the border of permissible before being halted trade.
Meanwhile, Chicago index futures trading, which measures investors’ expectations for volatility in the S & P 500 (ie. The fear index) rose by 47%. For the week the index, existing since 2003., Rose by almost 120% – a record, which was not reported even during the global financial crisis.