Via Business Insider
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.
Perhaps the biggest financial market story in 2018 so far is the colossal fall from grace of the Chinese stock market, which has witnessed losses in excess of 30% since the start of the year.
Continue reading “The $600 billion reason why China’s stock market crash might get a whole lot worse”
