https://www.businessinsider.com.au/why-chinese-stocks-have-crashed-in-2018-2018-10
-
Chinese stocks have lost more than 30% of their value since the start of 2018.
-
Fears of a slowing economy, rising debts and the impact of US President Donald Trump’s trade war have all played a role in pushing the Chinese market lower.
-
However, a wave of forced selling of company shares could see the market drop even more.
-
Hundreds of Chinese companies use their shares as collateral for loans, and are forced to sell when their share price drops below certain levels.
-
Analysts believe this trend is likely to exacerbate the major declines already seen in Chinese markets this year.
Submitted October 21, 2018 at 12:25PM by Jeebzus2014 https://ift.tt/2S8Nyy2
