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| Chinese stocks continue to tumble after global rout | Chinese stocks continue to tumble after global rout |
| (about 1 hour later) | |
| Chinese stocks have fallen again, a day after their worst plunge since 2007 caused market losses around the world. | |
| The global sell-off was driven by fears that China's slowing growth might pull down other economies. | The global sell-off was driven by fears that China's slowing growth might pull down other economies. |
| The benchmark Shanghai Composite was down 4% at midday on Tuesday, after dropping 8.5% on what state media called "Black Monday" - overnight, stocks in Europe and the US also fell. | The benchmark Shanghai Composite was down 4% at midday on Tuesday, after dropping 8.5% on what state media called "Black Monday" - overnight, stocks in Europe and the US also fell. |
| Other Asian markets opened lower on Tuesday, but recovered in later trade. | Other Asian markets opened lower on Tuesday, but recovered in later trade. |
| Live coverage of global markets | Live coverage of global markets |
| The Shanghai index opened 6.4% lower but recovered slightly to end the morning session of trade down 4.3% at 3,071.06 points. | The Shanghai index opened 6.4% lower but recovered slightly to end the morning session of trade down 4.3% at 3,071.06 points. |
| The 3,000 point level is seen as psychologically important for investors - falling below that could trigger panic selling. | The 3,000 point level is seen as psychologically important for investors - falling below that could trigger panic selling. |
| Investors globally are worried that firms and countries which rely on high demand from China - the world's second largest economy and the second largest importer of both goods and commercial services - will be affected by its slowdown. | Investors globally are worried that firms and countries which rely on high demand from China - the world's second largest economy and the second largest importer of both goods and commercial services - will be affected by its slowdown. |
| Carrie Gracie, China editor, BBC News: 'Beijing thinking hard' | Carrie Gracie, China editor, BBC News: 'Beijing thinking hard' |
| Some investors had hoped that the government might make a dramatic intervention to help. | Some investors had hoped that the government might make a dramatic intervention to help. |
| But after two months of attempting and failing to shore up the markets at a cost of hundreds of billions of dollars in state funds, even Beijing now seems to be thinking hard about what stock prices are sustainable in the long term. | But after two months of attempting and failing to shore up the markets at a cost of hundreds of billions of dollars in state funds, even Beijing now seems to be thinking hard about what stock prices are sustainable in the long term. |
| For a government whose legitimacy rests on economic competence, and which had hoped that a rising stock market would help ease the problems of a wider economic slowdown, this financial crisis still carries real political dangers. | For a government whose legitimacy rests on economic competence, and which had hoped that a rising stock market would help ease the problems of a wider economic slowdown, this financial crisis still carries real political dangers. |
| Read more from our experts: | Read more from our experts: |
| Andrew Walker: How the China share slump affects the rest of the world | Andrew Walker: How the China share slump affects the rest of the world |
| Karishma Vaswani: China counts cost of Black Monday | Karishma Vaswani: China counts cost of Black Monday |
| Robert Peston: Will China’s slowdown make us poorer? | Robert Peston: Will China’s slowdown make us poorer? |
| Duncan Weldon: China share falls - why it's not 2008 | Duncan Weldon: China share falls - why it's not 2008 |
| In recent months, the Chinese government has intervened in financial markets, in an attempt to try to maintain momentum in the economy. | In recent months, the Chinese government has intervened in financial markets, in an attempt to try to maintain momentum in the economy. |
| But the central bank's devaluation of the currency, the yuan, two weeks ago, raised fresh concerns globally the economy could be in worse shape than previously thought. | But the central bank's devaluation of the currency, the yuan, two weeks ago, raised fresh concerns globally the economy could be in worse shape than previously thought. |
| A cheaper currency lowers the price of China's exports, making them more attractive to global firms. | A cheaper currency lowers the price of China's exports, making them more attractive to global firms. |
| Elsewhere in Asia and Australia on Tuesday, markets beat expectations, opening lower but then returning back to positive territory by lunchtime: | Elsewhere in Asia and Australia on Tuesday, markets beat expectations, opening lower but then returning back to positive territory by lunchtime: |
| Those gains came despite the losses in Europe and the US overnight: | Those gains came despite the losses in Europe and the US overnight: |