Complete details about – China’s black Monday, Hundreds of billions wiped off as a result of the China’s massive stock market crash occurred on Monday 24th August. After US China is the second largest economy in the world contributing 13% of the world’s economy. This day was described as a black Monday by the media which caused the Chinese shanghai index into a down trend by 8.5%. This is the Shanghai worst single-day fall in eight years. Check More Details about – China’s black Monday from below.
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Complete details about – China’s black Monday
On this day the stock markets of all the major economies of the world were declined. BSE’s Sensex lost 1624 points and the America’s lost 1000 points followed by Japan’s Nikkei which got down by 4.6%, and the Germany lost whole thing it gained during the year.*.London’s FTSE 100 index closed down 4.6%. As a result of this short fall oil was placed at it 6 years lowest price whereas the bonds and instruments issueed by the government are free from this effect. The investors having their money in gold lost a lot due to the massive fall in its prices.
Reasons of China’s black Monday :
One of the main reasons for this fall is the sudden devaluation of Chinese yuan on 11th August of this year. From then it has lead to a loss of $5 trillion globally. This was seen as a sign for continuous ,incontrollable down trend in Chinese economic story. This sign of China’s downtrend which caused a tremendous decline in the demand for industrial products of many non Chinese companies whose major customer is China made them suffer a lot during this fall.
Government’s failure to curb the falling economy made it much harder to curb its effect. Despite of the measures taken by the government like devaluation of yuan it has been in a down trend still.Over the weekend, China announced it would allow pension funds to buy shares for the first time, But this could not save it from the massive down trend.Market was disappointed by the central bank’s failure to add liquidity by cutting banks’ reserve ratios.
As a result of this crash which made the world markets slipped massively , many billionaires in the world lost a portion of their wealth.
A Honk Kong billionaire lost RS 26000 crores on Monday.Another Chinese billionaire lost 97 % of his wealth in stock markets. Bill gates and Buffet were no way exempted. They lost 3.2, 2 billion dollars respectively. In India Gautam Adani lost his Rs 4900 crores. Dilip singhvi and Mukesh Ambani lost 1.2, 1.8 billion dollars on that black Monday.