Monday, June 4, 2007

The Plunge Continues - China

The rest of the world markets yawn as Chinese speculative bubble continues its plunge. Most global markets opened either flat or slightly down....

Chinese Stocks Take Big Fall
Chinese Stocks Tumble 8.3 Percent, Biggest Daily Drop Since February Plunge

BEIJING (AP) -- Chinese stocks plunged Monday following government efforts to cool a market boom, recording their biggest one-day fall since a February drop that triggered a global sell-off.

The benchmark Shanghai Composite Index tumbled 8.3 percent to 3,670.40, falling for the third time in four sessions since the government raised a tax on trading last week. The index had dropped 2.7 percent Friday. The Shenzhen Composite Index for China's smaller second market fell 7.9 percent to 1,039.90.

"There is the risk that this snowballs into a crash. Sentiment is so fevered that a bubble could burst," said Claire Innes, an economist in London with the consulting firm Global Insight.