Breaking News – Black January, 5 trillion loss on Chinese Stock Market.

Posted by Daniel Teng on Tuesday, February 5th, 2008

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Affected by factors including the snowstorm disaster in China and the sub prime mortgage crisis in the USA, China’s share market experienced “a Black January”. The total market value of Shanghai-Shenzhen “A” shares was reduced by over 5 trillion in the month. It was equivalent to 1/5th of China’s total GDP in 2007. Many lost huge amounts of money.
The bosses of the listed companies were also not spared, for example, the wealth of the richest man in Sichuan province, Liu Yonghao, was reduced by 1.1 billion Yuan.

Statistics compiled by the Western China City Daily in Sichuan province showed, on mainland China and Hong Kong’s stock markets, the wealth of more than 50% of the rich people in Sichuan were reduce.

Experts predict, the snowstorm disaster could reduce China’s first quarter GDP by 0.5 percent and increase consumer price index by 0.3 percent.

Because of the increased worries in the market for the snowstorm disaster, and the slowdown in American economy, a sluggish and weak market for A shares in mainland China is continuing.

This report is brought to you be SOH Radio Network

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