From Financial Times:
Shanghai’s new status as a weathervane for global markets proved to be short-lived after the stock market in mainland China rallied strongly yesterday in spite of sharp falls in the rest of Asia and Europe.
The dramatic trading on Tuesday, when the mainland market plunged 9 per cent, had raised the prospect that China was developing the capacity to spread global financial contagion. Halfway round the world, traders on Wall Street were blaming the Shanghai market for Tuesday’s 3.5 per cent drop in the S&P 500.
Indeed, there was some subdued pride among Chinese traders that the biggest one-day drop in a decade in Shanghai had also demonstrated the apparent importance of the country in global markets.[Full Text]