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A steep downturn in the Chinese stock market has sent shock waves throughout the global economy. On Monday,the Dow Jones Industrial initially dropped 1000 points, but bounced back several hundred points by the closing bell. Stephen Guilfoyle, and a stock trader on Wall Street,says things could be a lot worse. "I was here back in 1987," he said in an interview with the BBC. "That was a much more dire feeling in the gut of our stomachs than what we got nowadays. It was base and it could go there, or but it's not there yet.”The Chinese government has acknowledged the downturn—a state-controlled news agency even referred to it as "Black Monday." But does that mean average Chinese investors have the whole epic? What are they reading in The People's Daily whether the government controls the message?Patrick McGee is a Hong Kong based reporter for fastFT,a branch of the Financial Times that focuses specifically on financial markets.
He says Chinese investors are well aware of the downturn, but they win most of their stock tips from the government. Now they're waiting on Beijing to divulge them what to do next.
Source: wnyc.org