The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 6.2 percent at 3,825.41.
Selling was broad based. The CSI 300 infrastructure index fell 8.4 percent, the energy index dropped 6.1 percent, and the real estate index tumbled 7.3 percent.
The Shanghai Composite has lost 35 per cent in roughly three weeks after hitting a seven-year high on June 12.
In the EPJ Daily Alert, I have been warning for some time that China faces, perhaps, the greatest stock market and overall economic collapse, ever. It is a real world, current day, example of what occurs when a central bank attempts to manipulate the money supply. The People's Bank of China has, until recently, been flooding the economy with newly created money. Thus distorting the capital-consumption structure. The current collapse is, as explained by Austrian School Business Cycle Theory, the markets readjusting from the previous distortions. Since the previous PBOC created distortion has been spectacular, the readjustment/collapse will also be spectacular.
-RW
(via Reuters)
Why use "attempts to manipulate'? Reminds me of how youths are said to be "experimenting" with drugs. Just say it outright: "creates floods of money from nothing".
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