Chinese stock market continues its spectacular fall

The market shares of China
It continues to lose ground on Tuesday,
as investors stopped believing in
that regulators force can once again
to calm the markets. Shanghai Composite Index
today closed lower by 1.68%, although
It fell by as much as 4% in early trading. A Shenzhen Composite
all fell on Tuesday by 2.28%, and also
I had a rather "volatile" trading session.

Yesterday's close with
loss of 8.5% reference index Shanghai
It was the worst in eight
years. Shenzhen market, which is full of
technology stocks, closed
slide 7%.

Chinese stocks
faced with a dramatic fall,
which has been going on for two
months. The first signs of trouble
the market began in June, after
as the Shanghai Composite peaked at more
than 5100 points, showing growth of approximately
by 150% over the previous 12 months. When
bubble burst, the index lost 32% of its
the cost of just 18 trading sessions.

Such strong volatility
It forced the government to carry out a number
measures to stabilize the markets. but surprise
appeared this Monday that
after a period of relative quiet
again frightened the world markets. Three weeks
analysts wondered how the Government
managed to "delay" the fall, and many
it even seemed that their plan and the truth will
work.

And here's another defeat
the stock market once again calls into question
Government action is effective,
and there is a question, why so Beijing
long he pulled from its support on
market?

In a statement issued
after the market closes on Monday,
Chinese Regulatory Commission
securities market, said her goal
- "continue to stabilize the market,
to restore public confidence
and guard against systemic risk".
The Office said that it will continue
the purchase of shares with money
funds provided by the central
Bank.

Among other measures,
aiming to smooth volatility
market, PBOC has lowered
interest rates to a record low
level, and illegal sellers with short
rates were threatened with prison. Into one
moment, more than half of all companies on the
Exchange halted trading for its
shares, and regulators also canceled all new IPO. We will see,
How long will these measures and whether
market again begin to trust Chinese
the central bank.

Hang Seng rose on Tuesday
to 0,74%, Nikkei fell to 0.1%, and S P / ASX decreased
0.09%.