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Shanghai Stock Index Plunges 8% in China Selloff
China suffered its worst stock losses since 2007 and 2008 in early trading this morning, with the Shanghai index at one point falling more than 8% in early trading. In Hong Kong, prices were down 4.6% while the main Shenzhen index lost 2.6%. The steep dives accelerated a pattern that began a month ago and came after the government stepped in to stop the bleeding. Beijing last weekend announced measures to stabilize markets that included 21 brokerages buying $19.4B worth of shares in mostly state-owned firms. Analysts agree that the decline in stock prices from their June 12 peak stems largely from highly leveraged margin buying by investors.
