China’s Stock Market Drops 8% Suddenly

Image by Getty Images via Daylife

The Chinese stock market has seen an overall 90% gain in the past eight months but today there was a glitch in this stellar performance when the Chinese government announced that it will begin tightening the money supply through the Chinese banking system.


On the news, the Chinese Stock Index, the SSEC, fell as much as 8% at one point and later recovered at least temporarily to a total decline of 5% for the day.

Chinese stock investors are likely to remain wary over the next few weeks as they watch events play out before returning to the market.

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