BusinessInsider Worries About A “China Stock Market Crash”

by | Dec 9, 2014 | News

This morning (December 9, 2014) BusinessInsider Worries About A China Stock Market Crash today.  Should we be concerned?

The poor writers at Business Insider.  They worry so much about things they have no control over.  Yes, China is down roughly 5% in overnight trading.  But should this be considered a  China Stock Market crash?  The reason behind the drop: The Shanghai Market tightened collateral rules for short term loans.  Here in the US, we may consider this “margin.”  On the surface, that kind of headline may worry some.  But take a little broader look:  Over the past year, more new retail brokerage accounts have been opened on the Shanghai market than ever before. And the index itself has vaulted from near 2000 a year ago to roughly 3000 today.  Since January, the Shanghai market is up (according to the Business Insider post) +39.47%.  With that kind of move throughout the year, a drop of 5% should not come as a surprise.  And does not appear to be the beginning of a China stock market crash, at least initially.


Here is the post from BusinessInsider:


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