China shares tumble as Greece worries dog markets

China's benchmark share index plunged almost six percent, at the end of another torrid week for mainland investors

Chinese stocks capped their biggest three-week decline since 1992 as the country's $2.8 trillion rout deepend. 

The Shanghai Composite Index plunged almost 6pc, at the end of another torrid week for mainland investors, taking losses since June 12 to 29pc. 

The Shenzhen Composite Index slumped 6.9pc, with mainland markets pummelled by profit-taking and margin traders calling in their bets.

The Chinese government pledged to punish stock manipulation as markets continued to sell off, even after margin-trading rules were eased, interest rates were cut and pension funds were given permission to buy stocks. 

Many China-listed companies have also pledged to support prices through buying equities or halting new share sales.

DYI Comments:  The yellow highlighted portion is the Chinese government's total desperation to halt the decline.  This and other similar tactics were attempted by Japan in their vain endeavor to halt the slide.

 

The difference between Japan and China is the level of debt.  China is massively in debt private and government to unsustainable levels.

Many of us China watchers have been forecasting (for the past 5 years) an economic implosion with the potential to blow the empire apart.  Time will tell if this is the deflationary smash or just a correction as the Chinese government encourages further indebtedness to extend the illusion of economic growth.

DYI