The above quote is from SCMP's managing editor George Chen's Tweet.
The Chinese government sees the unfolding market crash as a problem of selling. So like always, the policy response has been knee jerk, in particular--to ban trading for half of listed issues that had been sold.
These headlines tell them all
From Bloomberg
From Business Insider
And because the policy response has been reactionary (something which I'll discuss someday), the result of which has been more of the same...
Amidst government support, the crash has only intensified.
And this time, it's not just China. But apparently crashing stocks has spread to Hong Kong too...
Hong Kong's Hang Seng Index (HSI) collapsed by about 8% intraday (right window) before recovering during session's end (perhaps due to interventions too) to close down by a staggering 5.84%.
But the profuse bleeding of Hong Kong's stocks has been broad based as seen above.
And this has began to diffuse into the region. Japan's Nikkei 225 sank by 3.14% and Taiwan's Taiex down 2.96%.
Will the rest of Asia be next?
Or will Red Capitalism close the stock markets, once and for all, and hope that all the problems will just vanish?
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