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China’s stock crisis bigger problem than Greece’s debt: regulators freeze 40% of China’s total stock market

Fonte/Source, MarketWatch, Now more than 70% of mainland China stocks are locked to investors, via trading halts and other measures that Beijing introduced to stem an investor exodus, according to Bloomberg. That is 1,331 companies, or 2.6 trillion shares, representing some 40% of China’s total stock market — frozen in ice.

And, still, mainland China stocks tumble. Plus, on Wednesday, Hong Kong’s Hang Seng Index, which had fared better than its mainland counterpart, started to see some spill over.

Here’s what Audrey Goh, an investment strategist at Standard Chartered told Bloomberg: “The selling in China will continue for some time,” and the “suspension in trading of a number of companies in mainland exchanges isn’t helping.”

Why is all this important? China’s is the second-largest economy and one of the biggest consumers of the commodities and goods other countries sell. The country’s economy has been slumping, but this recent bout of intervention by the Chinese government (and there have been a string of interventions, Quartz reports) and its central bank may send the clearest signal yet that its financial system is on dubious footing. Worries about the country’s financial stability have hammered commodity prices broadly but particularly copper HGU5, +2.29% .

Back in the West, Greece is still helping to drive headlines, if not spurring volatile trading. So, here’s the news: Greece has a new deadline, again. The country has until Sunday to cobble together a credible bailout proposal that will appease its international creditors. Or else. We’ll see how that plays out. Most investors aren’t holding their collective breath and are bracing for Greece’s exit from the eurozone.

On Wednesday, Greek Prime Minister Alexis Tsipras, during a speech in front of the European Parliament, said a detailed proposal from Greece was forthcoming, he also took the opportunity to rebuke austerity measures being imposed on the country, which was met by perfunctory applause. In other words, Tsipras doesn’t exactly sound like a man gearing up for a meaningful compromise.

Fonte/Source, http://www.marketwatch.com/story/forget-greece-china-is-cause-to-freak-out-2015-07-08?mod=NTKfeed&link=mw_fb_ntk

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