Summary Chinese stock exchanges saw a year-long debt-fuelled rally, but have since June plummeted
PARIS (AFP) - Key developments in the crisis on Chinese stock markets and the knock-on effect of the crisis in the world s second economy on the world stage:
Chinese stock exchanges saw a year-long debt-fuelled rally, but have since June plummeted by more than 40 percent, and broad government interventions have failed to halt the decline.
- June 26, 2015: Chinese shares plummet spectacularly. The benchmark Shanghai Composite Index closes down 7.40 percent, while the Shenzhen Composite Index, plunges 7.87 percent.
The rout continues for another two months, with Chinese stocks losing more than 40 percent of their value since mid-June.
- August 11: China s central bank announces a sharply lower 1.86 percent daily reference rate for the yuan against the US dollar, saying it is part of moves to make its exchange rate regime more market-oriented.
The sudden devaluation is seen as an effort to make Chinese goods cheaper overseas.
Beijing carries out new devaluations on August 12 and 13, a drop of 4.6 percent in three days.
- August 12: Three key Chinese indicators, including industrial production, all come in below market expectations, pointing to further weakening in the Chinese economy and expected more policy loosening.
Asian stocks markets drop and European stock markets follow their lead, dropping even further.
- August 20: Asian and European stock markets collapse. On Wall Street the Dow Jones falls to its lowest level this year.
- August 24: In what is dubbed "Black Monday", Shanghai shares nosedive 8.49 percent, the biggest daily drop in eight years, after losing 11 percent the previous week. Panic spreads to major European and Asian stock markets, while commodity prices hit new lows.
- August 25: China s central bank cuts its benchmark interest rates, the fifth since November, and slashes the amount of cash banks must keep on hand.
The Chinese measures lead to a rebound on European stock markets, while a similar rebound in US shares fizzles out.
- August 26: Global equity markets go on another rollercoaster ride. The Shanghai stock exchange closes lower. European markets drop, while Wall Street equities surge higher.
