Chinese stocks fall again after ‘Black Monday’

Chinese stocks have dropped again following a dramatic day that saw billions wiped off markets around Europe and the world. Major Chinese stock indexes tumbled more than 6% in early trading, hitting their lowest levels in eight months, following their 8.5% plunge on Monday. The CSI300 index of the largest listed companies in Shanghai and Shenzhen finished the morning session down 3.9%, while the Shanghai Composite Index fell 4.3%.

There are a number of positive things happening under the surface of all this chaos and it is easy to forget those things when you see these types of moves.

Jason Ware, chief investment officer at Albion Financial Group in Utah

Markets elsewhere in Asia have bounced back. Japan’s Nikkei reversed early losses, rising 0.5% to 18,620.89. Hong Kong’s Hang Seng added 1.1% to 21,489.11, while South Korean and Australian stocks also gained. European equity markets look set to follow those major Asian stock markets this morning with the FTSE 100 expected to open 0.7% - or 43 points higher. After a year of gains, Chinese markets have been hit by increasing signs that economic growth is faltering. The People’s Bank of China is under pressure to announce a new round of quantitative easing to boost money supply in an economy suffering weaker demand across all sectors.

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