From Forbes:
They’re calling it Black Tuesday in China: local stock markets unexpectedly sold offt, losing nearly 9% of their value, and putting pressure on equity prices around the world.
Analysts said the Shanghai and Shenzhen markets were reacting to widespread rumors of plans by the Chinese government to raise interest rates or institute a capital gains tax, measures that would serve to temper local stock markets that were up about 10% for the year before Tuesday’s decline.
Vincent Lam, director and fund manager of Quam Asset Management said “Rumors has been circulating in Hong Kong for a few days that China Premier Wen will announce a new set of policies, such as raising interest rates, to tighten China’s economy.” [Full Text]
-Also see the story from Financial Times
