Montag, 19. Januar 2015

China stocks sink on lending curbs

China's main share index fell by the most since 2008 after authorities cracked down on margin trading, where investors borrow cash to buy shares.

China's main index crashed. It had fallen 8%, with banking stocks among the worst-hit. It was that index where investors borrow cash to buy new shares. Now the investors can't get borrow new money for three months now, which is terrible for the economic in China, because the bought of shares are a main income, and shares can't be bought because the investors cannot borrow money to buy new shares.

When China's main index crashed, China couldn't do business with other countries. This affects globalization, because China is one of the countries with the biggest economies because of their population. Now China needs to find a new way to balance that icome which they normally have from the bought shares. This has to do with strategy, because they need for the next 3 months a new source of income.




 http://www.bbc.com/news/business-30875490

SSE Composite one month chart

1 Kommentar:

  1. 2/4 a nice attempt to bring in the CUEGIS concepts but a little too superficial as more discussion is needed to follow your thinking through. Where are the links to the course and what we have studied?

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