World economy set for MELTDOWN? China stock loses £110BILLION sparking panic sell-offs
CHINA’S stock market has plummeted so low it’s now officially in so-called ‘bear’ territory sparking fears the world economy could go under.
By LANA CLEMENTS
Express.co.uk
Fri, Jan 15, 2016
The Shanghai Composite stock market lost another 3.5 per cent today to enter a bear market, as authorities appear powerless to halt investor fears, and the negative sentiment hit British markets.
London’s FTSE 100 was in the red again as it nursed losses of almost two per cent.
The bluechip index is down almost three per cent since the start of 2016, or around £110billion of value wiped in just ten days.
A bear market is where investor sentiment enters a downward spiral of panic and pessimism prompting huge sell-offs, which in turn pushes values lower to fuel more negative sentiment and yet more selling.
An index is usually classified as being in a bear market after stocks have fallen by 20 per cent in a month.
And the latest losses on the Shanghai Composite index means it is now sitting more than 20 per cent below its December high.
Simon Smith, chief economist at FX Pro.com, said: “The end of the week in Asia has seen emerging markets record their third weekly loss in a row and the same can be said for some European markets as 2016 so far has been a terrible year for global stock markets.”
Alastair McCaig, market analyst at trading platform IG, said: “Last night’s Chinese selloff has once again seen the Asian powerhouse move back into bear market territory for the second time in just over six months.
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