China stocks tumble as global shares slump
August 25, 2015
Shanghai stocks fell more than six percent at Tuesday's open, extending Monday's losses in which China's main benchmark had its biggest plunge in eight years.
The Shanghai Composite Index fell as much as 6.4 percent to 3,004.13 in the first few minutes of trade, before trimming its losses later on.
The index fell more than 8 percent on Monday in its biggest drop since February 2007. The tumble sent shockwaves around the world, with the Dow plummeting some six percent and European markets also suffering a slump.
Other regional markets opened lower on Tuesday but Tokyo, Seoul and Sydney all bounced back into positive territory by mid-morning.
After a long rally, Chinese stocks have been buffeted by increasing signs that economic growth is weakening. China's shock devaluation of the yuan two weeks ago, following a string of weak economic data, has riled world markets.
"Global investors are cannibalizing each other. Calling it a market disaster is not an overstatement," analyst Zhou Lini told Reuters.
"The mood of panic is dominating the market ... And I don't see any signs of meaningful government intervention."
jr/lw (Reuters, AP, AFP)