How does the Chinse stock market affect our and other countries stock markets?

Question

I have a project an I search and i would like to know how the chinese stock market affects the world like America, Europe, India and all. So if anyone could help me plz write thxx

Answer 1

In today's global investment environment, many markets in different areas are all linking together. For example, the free entry and withdraw of capital from and to the stock markets in different countries. Therefore, crash in one markets may consequently affect the investment in other countries, either in term of money or in term of faith.
On the other hand, nowadays investments are said to be multi-dimension. It means the stock market, foreign exchange market and bond market, etc. may all be included in a single investment profile. So they have impacts to each other, thence any of them may affect the other profile.
Therefore, it can be seen that there are many chains exist in different markets in different country. Chinese stock market is also the elements of the chains.

Answer 2

China has massive tradeing arrangements with other countries, so when their stock market crashes it can effect the prices of import and export goods. This has a flow-on effect to domestic markets and companies. The same can be said for any country that has large trading balances, such as the USA and Japan

Answer 3

China is very large investor in the USA bond market- meaning they finance our debt. If China's market collapsed then they wouldn't buy bonds causing harm to the American economy, thus effecting the world's economy. Also China invests in dollars.

This was a very layman's explanation I suggest you go to the BBC they have a program on audio World Business Review. I would also type China economy or stock market in their search engine.

Answer 4

how many MADE IN CHINA do u c?
well if that stock is down in china, it means their companies will stop produceing goods, meaning all the made in china will be gone, then all the things have to be made in somewhere else where it will cost more, so things price will go up. and if that happens our economy will go down too, cuz it will cost us more, and that will prevent people to spend more money