China’s stock market meltdown
China could be heading towards the biggest financial disaster since the 1929 Wall Street crash after shares on its stock markets nosedived, dropping by around 30 percent in less than a month.
More than $3.2 trillion has been wiped out in three weeks – an amount more than 10 times the size of the entire Greek economy.
The Chinese government has been scrambling to avert a crisis and has issued an emergency response to keep the flagging economy going.
Andrew Kenningham, a senior global economist at Capital Economics, told Counting the Cost that unlike Greece, which has dominated headlines this week, China was not facing a debt crisis but was dealing with a major stock market bubble and correction.