The Current

China's stock market intervention might do more harm than good

In China, millions of people rode the wave of stock market exuberance. And now they are panicked, as inflated markets come crashing down. Chinese investors have seen savings erased. We speak with a Beijing man who's lost much of his life savings.
A billion dollars was being lost every minute in the Chinese stock market, prompting the Chinese government to pull out all the stops -- including banning large shareholders from selling stocks. (REUTERS/Aly Song )

The world has been focused on Greek's debt crisis, but the stock market's slide in China has as much potential to wreak global havoc. (REUTERS/Tyrone Siu )
The Chinese stock market started on a steep, downward slide in June -- wiping out thirty per cent of its wealth, or some three trillion dollars, in just four weeks.

At one point a billion dollars was being lost every minute, prompting the Chinese government to pull out all the stops -- including some dramatic interventions, such as banning large shareholders from selling their stocks. 

That emergency treatment put a temporary stop to the bleeding, but in recent days, stocks have been moving downward once again.  

Zhiqiang Li is one of the 90-million or so Chinese people who do own shares, and have seen their savings take a hit. He says he's lost 100,000 yen, or $20,000 Canadian dollars in the past few weeks. Zhiqiang Li is an officer a Chinese media company in Beijing, and we spoke with him earlier, through a translator.

"I've lost so much money that I've worked so hard for. We don't earn much. It was all savings from our hard work. "  - Zhiqiang  Li

It's not just Chinese investors like Zhiqiang Li who are watching and waiting to see if the market can climb back up -- 
It's the whole world. 

This segment was produced by The Current's Sonya Buyting and Daisy Xiong. 


♦ China's Stock Market Is Falling Again - Slate
♦ 3 charts that explain China's stock market fall - Business Insider
♦ China Crash Is 'Way Bigger Than Subprime' - Bloomberg
♦ ​Investors Doubt Beijing's Help - The Wall Street Journal