Global markets hit panic button after the "Great Fall of China"
'Black Monday': £91bn wiped off FTSE 100 as China fears spark global panic-sellingShanghai’s stockmarket fell by 8.5%, its worst day since 2007, as fears about the authorities’ ability to guarantee a ‘soft landing’ for the economy grew.
Even CNN is reporting on it.
It's ordinary Chinese that have been the biggest victims of the crash.
Millions of them piled into the market after regulations were loosened on margin trading -- borrowing money to invest.
"I know people who sold their houses to invest in stocks. Now they're finished," one man told CNN last month outside a Shanghai brokerage.
However, the sharp recent losses follow a long rally, with both China's two main stock indexes still holding on to gains if measured since the start of the year.
And economists say stocks only make up 15% to 20% of Chinese households' wealth. This should help keep spending money in the pockets of consumers.
