The Chinese stock bubble of 2007 () was the global stock market plunge of February 27, and November 2007, which wiped out hundreds of billions of market value. After rumors that governmental

Chinese Chinese can refer to: * Something related to China * Chinese people, people of Chinese nationality, citizenship, and/or ethnicity **''Zhonghua minzu'', the supra-ethnic concept of the Chinese nation ** List of ethnic groups in China, people of ...

economic authorities were going to raise

interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...

s in an attempt to curb

inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...

and that they planned to clamp down on

speculative Speculative may refer to: In arts and entertainment *Speculative art (disambiguation) *Speculative fiction, which includes elements created out of human imagination, such as the science fiction and fantasy genres **Speculative Fiction Group, a Per ...

trading with borrowed money, the

SSE Composite The SSE Composite Index also known as SSE Index is a stock market index of all stocks ( A shares and B shares) that are traded at the Shanghai Stock Exchange. There are also SSE 180, SSE 50 and SSE Mega-Cap Indexes for top 170, 50 and 20 compa ...

Index of the Shanghai Stock Exchange tumbled 9%, the largest drop in 10 years. The plunge in

Asia Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an are ...

n markets sent ripples through the global market as the world reacted to the 9% meltdown in the Chinese stock market. The Chinese Correction triggered drops and major unease in nearly all financial markets around the world. After the Chinese market drop, the

Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...

in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...

dropped 416.02 points, or 3.29% from 12,632.26 to 12,216.24 amid fears for growth prospects, then the biggest one-day slide since the September 11, 2001, terrorist attacks. The S&P 500 saw a larger 3.47% slide. Sell orders were made so fast that an additional analysis computer had to be used, causing an instantaneous 200-point drop at one point in the Dow Industrials. But, Shanghai Composite then raised to peak 6,092 in October 2007, then plunged between November 2007-November 2008.

References

{{Financial crises Stock Bubble Of 2007 2007 in economics Economic bubbles Stock Bubble Of 2007 Stock market crashes February 2007 events in China November 2007 events in China

See also

References