China stocks plunged again on Wednesday, even as regulators worked to contain a crisis that has wiped trillions of dollars off the country’s stock markets.
The Shanghai Composite plunged 8% at the market open on Wednesday, and spent the entire day in negative territory before closing down 5.9%. The vast majority of stocks listed on the benchmark index shed 10%, the maximum limit shares are allowed to fall before being halted.
The smaller Shenzhen Composite lost 2.5%, while Hong Kong’s Hang Seng dropped 5.8%.
“At the moment there is a mood of panic in the market and a large increase in irrational dumping of shares, causing a strain of liquidity in the stock market,” China Securities Regulatory Commission said in statement.
Since June 12, the Shanghai Composite has lost an unnerving 32%. The Shenzhen market, which has more tech companies and is often compared to America’s Nasdaq index, is down 41% over the same period.
Few countries would turn down the title of world’s largest economy. You can count China among them.
Only the United States has enjoyed the immense power and prestige conferred by this position in the last 140 years (the U.S. surpassed Great Britain as the world’s largest economy in 1872 and has held the spot ever since). But last week, the Chinese government reacted with thinly disguised animosity to an authoritative economic report announcing that China would overtake the United States in 2014 as the world’s largest economy in terms of purchasing power parity (PPP).
When I was visiting Paine Field recently, I caught a glimpse of a special livery from Air China. Yesterday the Boeing 777-300ER was delivered to the airline and Boeing shared some background information on the unique design.The aircraft displays 40 different smiling Chinese faces to represent the role that Chinese aviation has played in bringing China to the world.
Frank Lavin is a guy with lots of guanxi—which loosely translated means “connections” in Chinese. The Ohio native has served as U.S. ambassador to Singapore, led trade negotiations with China while working at the U.S. Department of Commerce, and held senior posts in the Asian offices of Bank of America (BAC), Citibank, and public-relations firm Edelman. When Lavin published a business guide on how to conquer overseas markets last year, his friend Karl Rove blogged a positive review.
Lavin is using those contacts to build an unusual type of export business. Founded in 2010 and headquartered in Akron, Export Now’s 15 employees handle customs clearance, trademark registration, order fulfillment and other back-end tasks for 24 U.S. companies. Rather than negotiate for shelf space with Chinese retailers as a traditional distributor would, Export Now runs its own virtual storefront on Alibaba Group’s Tmall.com, an Amazon.com (AMZN)-like e-tailing colossus with nearly 500 million registered Chinese users. “China is the fastest-growing consumer market in the world, but it’s still viewed as largely inaccessible for all but the top-tier U.S. companies or global [multinationals],” says Lavin, whose outfit also has an office in Shanghai. “We have a department store in the shopping mall, and any U.S. company can have shelf space in the department store.”
While we’re watching the Olympics, several hundred thousand workers from Qidong protest an open ended waste water pipe being routed to the sea…
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The Kokaistudios ‘Yu Bar’ is a lavish rooftop retreat that overlooks the beautiful city of Shanghai, China. Located near the banks of the Lupu River, this sky-high lounge provides patrons a view that is breathtaking and gorgeous.
“The government is trying to strike a better balance between stabilizing growth in the short term and adjusting structure in the long term,” said Peng Wensheng, chief economist in Beijing at China International Capital Corp., who worked at the International Monetary Fund and Hong Kong’s central bank. Total stimulus this year may be less than one- third the size of the 5.4 trillion yuan fiscal and monetary firepower of 2009, Peng said.