I just read an article at cnn.com about the affect china stock market have on US and other countries. It seen that the shanghai index fall 8.8% due to the chinese government looking into the reason why Chinese stocks rise to record highs. Because of this many investors are affraid of investing into the chinese stock market. The affect from this causes the US Dow to drop 3.3% in one day. Also from what i heard, china stock market is going through the same problem that US have in 1929. Where the investors uses borrowed money to buy stock. Not sure if this is true.
Article:
http://money.cnn.com/2007/02/27/markets/selloff/index.htm?postversion=2007022716
if anyone know anything about this please comment. Also what do you guy think what will happen if the chinese market crash?
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