Wednesday, August 19, 2009

4% Drop in China, Flirting with Technical Bear Market

The benchmark Shanghai Composite Index fell as much as 5.1 per cent at one point, technically falling into a bear market as it was more than 20 per cent lower than this year’s peak on August 4, when it reached 3,471.40. It recovered slightly to close at 2,785.50, down 4.3%.

Is money tightening coming to China? Reports say, Wang Qishan, vice-premier, held a meeting with the country’s main regulatory bodies on Tuesday as the government planned to rein in liquidity.

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