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Thursday, June 19, 2008

Chinese Stock Market Down 50% in 2008

I was following a link in a story at the WSJ and found this.
The Shanghai Composite Index fell 192.24 points, or 6.54%, to close at 2748.87, a fresh 16-month low extending a weeks-long slide that has seen the index drop 20% this month and nearly 50% so far in 2008.
Wow.

I haven't had the time to delve deeper, but I wonder what this portends for China, especially with rising oil prices and China's subsidies for domestic gasoline. It can't be good for them.

1 comment:

  1. China announced today that they will increase domestic fuel prices by about 10%. Doing this right before the Olympics is really a surprise. A similar move in India lead to riots. So clearly they are hurting.

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