Chinese stock markets and fear of its hard landing has played havoc on commodities and scaring equity investors globally. But doesn't it feel like it's getting far too much? Oil at $30 with just around a million barrel oversupply when half the world production of 95 million barrels per day is making cash losses at current prices. Similarly doom Sayers are predicting crash in Chinese economy and thus a crash in global stock markets. Lets look at some facts behind Chinese stock markets and if it really can hurt global investors and markets.
![Shanghai Stock Market 5 year performance Shanghai Stock Market 5 year performance](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXzobuPU4ddPC-QcD9zMNBAt4e1HmT1WhsRyH-_9HeWf4JZysFbF9KiVDOTB3ppbkgeCTsALyS5PEEikH9FG8Snx4MpHl5Lpz5SFEnnGL9kAqvpksiAzD_BM_2SnoLoGNDVYApq_VopKE/s400/CSI+300.png) |
CSI 300 5 Year Chart |
1. Unlike mature markets of Europe, America, India etc, Chinese stock markets have more than 80% retail investors with barely 2% foreign holding. So a 50% crash in Chinese market would affects these foreign investors portfolio by just 1%. BIG DEAL!