This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-34048785
The article has changed 10 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Europe shares jump despite further massive falls in China | Europe shares jump despite further massive falls in China |
| (35 minutes later) | |
| Shares in London and elsewhere in Europe jumped in mid-morning trading, despite another night of steep falls for the Chinese stock market. | |
| The FTSE 100 was up almost 3% at 6,065, while Germany's Dax and Paris Cac were both up more than 3%. | |
| The gains came after Chinese stocks continued their run of big losses. | The gains came after Chinese stocks continued their run of big losses. |
| The main Shanghai Composite index closed down 7.6% at 2,964.97 points. Japan also saw more sharp falls and Tokyo's Nikkei index was 4% lower. | The main Shanghai Composite index closed down 7.6% at 2,964.97 points. Japan also saw more sharp falls and Tokyo's Nikkei index was 4% lower. |
| On other European markets, Lisbon, Madrid and Milan were all up 3% by mid-morning and Moscow up by 2%. | On other European markets, Lisbon, Madrid and Milan were all up 3% by mid-morning and Moscow up by 2%. |
| Follow our live coverage of global markets. | Follow our live coverage of global markets. |
| The global sell-off has been driven by fears that China's slowing growth means less business for everyone else. | The global sell-off has been driven by fears that China's slowing growth means less business for everyone else. |
| China's booming economy of the last 30 years has seen the country suck in supplies of raw materials for manufacturing and, increasingly, manufactured and luxury goods from other countries. | China's booming economy of the last 30 years has seen the country suck in supplies of raw materials for manufacturing and, increasingly, manufactured and luxury goods from other countries. |
| Analysis: Robert Peston, BBC business editor | |
| Paradoxically, Beijing actually looks more in control of the events that matter - in the short term at least - in not artificially inflating share prices and bailing out the 50 million to 90 million Chinese households who've been punting on the market. | |
| That may, of course, just be an illusion. | |
| Beijing will be hard pressed to meet its target of 7% GDP growth this year without doing the opposite of what is needed to put the economy on a sustainable footing, which is to curb debt-fuelled investment in infrastructure, construction and lame-duck heavy industries. | |
| Also very difficult to gauge is the scale of the negative impact on the spending habits of investors whose wealth has been mullered and on the investing habits of companies whose share prices have been poleaxed. | |
| But there is a serious risk of economic aftershocks from the market quake: multinationals with production in China aimed at Chinese consumers tell me they are significantly scaling back their manufacturing plans. | |
| Read Robert Peston's blog in full | |
| The six Cs of the China stock slump | The six Cs of the China stock slump |
| The stocks fall in facial expressions | |
| 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 |
| Duncan Weldon: China share falls - why it's not 2008 | Duncan Weldon: China share falls - why it's not 2008 |
| After decades of rapid growth, China is running out of steam. Investors globally are worried that firms and countries that 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. | After decades of rapid growth, China is running out of steam. Investors globally are worried that firms and countries that 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. |
| But although the slowdown in the Chinese economy will have a bearing on Chinese firms' profitability, many view the stock market as grossly inflated. | But although the slowdown in the Chinese economy will have a bearing on Chinese firms' profitability, many view the stock market as grossly inflated. |
| The main Shanghai index more than doubled in the 12 months up to mid-June. | The main Shanghai index more than doubled in the 12 months up to mid-June. |
| Weak manufacturing figures from China prompted a massive fall in shares on Friday, which was followed by another, the biggest in eight years on Monday, triggering a mass sell-off across the globe. | Weak manufacturing figures from China prompted a massive fall in shares on Friday, which was followed by another, the biggest in eight years on Monday, triggering a mass sell-off across the globe. |
| What the Chinese papers say | |
| Several state-run newspapers are urging the government not to intervene in the market. | |
| "The authorities should slowly step out of the policy of rescuing the stock market. The purpose of the government's intervention is to control financial risks and not to lift up the equity market," an article in Xinhua's Economic Information Daily says. | |
| State-media are also playing down fears about the impact of China's slowing economic growth. | |
| The Global Times has urged investors "to not be swayed by some unusual short-term jitters in the stock markets or exchange markets", while an article in the Beijing News disagrees with the widespread view that the devaluation of the yuan by China's central bank caused the tumble by spooking investors. It argues that a cheaper yuan "is beneficial for the global economy". | |
| Other papers, including the National Business Daily, blame the anticipation of a rate hike by the US central bank as one of the culprits for the uncertainty in the stock markets of world capitals. | |
| Capital Economics said investors had been "overreacting about economic risks in China", arguing that "the collapse of the equity bubble tells us next to nothing about the state of China's economy". | Capital Economics said investors had been "overreacting about economic risks in China", arguing that "the collapse of the equity bubble tells us next to nothing about the state of China's economy". |
| The government, which has both money and the power to influence what are not free markets, has taken steps to lower the value of the yuan in order to boost demand for Chinese goods overseas. It has also intervened in the stock market to support values. | The government, which has both money and the power to influence what are not free markets, has taken steps to lower the value of the yuan in order to boost demand for Chinese goods overseas. It has also intervened in the stock market to support values. |
| Although very few Chinese people own shares - only about 2% of the population - they are extremely active on its stock market. They are responsible for the majority of daily turnover and the government is trying to ameliorate the impact of the trading rout on those individuals. | Although very few Chinese people own shares - only about 2% of the population - they are extremely active on its stock market. They are responsible for the majority of daily turnover and the government is trying to ameliorate the impact of the trading rout on those individuals. |
| Many bought shares with borrowed money, and as those investments fall in value, they are now selling them to pay back their debts. | Many bought shares with borrowed money, and as those investments fall in value, they are now selling them to pay back their debts. |
| Are you concerned about the falls in the Chinese stock market? Has your business been affected? You can share your comments and experience by emailing haveyoursay@bbc.co.uk. | |
| Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |
| Or use the form below | Or use the form below |