The Asian stock exchanges decline indicate that the China’s economy will fall further, which is the second largest economy in the world.
The Chinese govt. has taken some measures when the Shanghai stock Exchange has slumped more than 30 per cent from their mid June peak. Once the govt. has taken the measures, the index has been rose up by 17 per cent but again it has lose all those gains and fallen again 21 per cent.
In the meantime the govt. has come up with a rescue package which included funding the state backed China Securities Finance Corp, to buy stocks on behalf of the govt. other measures include barring “big” investors from selling their stakes and cracking down on short selling.
Apart from Shanghai, Beijing stocks also in its below level compared to last year. Even though the govt. has done all the efforts to support the market, experts in the market say shares will fall further due to global bourses is blowing back on China.
As per experts, the ruling party of the country needs to deliver better living standards, reduce poverty and satisfy the middle class as well. The govt. also needs to maintain a minimum level of economic growth which will ultimately leads to more employment and prevent social imbalance.