By Akhil Kumar:
While the world is anxiously following the dramatic developments in Greece as its exit from the Eurozone will have a huge impact on the global market, we are also faced with an impending meltdown of the world’s 2nd largest economy.
A report says that China’s market is 10X more important than Greece’s debt, as $3 trillion has ‘evaporated from the Chinese stock market in the last month,’ which is nothing compared to Greece’s $350 billion debt that has got the world anxious. So, should we be concerned? The same report also goes on to say that ‘the Chinese market is largely independent from the rest of the world. But as 1929 reminds, wild swings in markets can have severe economic and political consequences‘. This video explains what might have led to this crisis.
If you want to explore the issue in more depth, a report in The Washington Post titled ‘7 big questions about China’s astonishing stock market crash and what happens next‘ provides valuable insight.