China Overtakes Greece As The Biggest Threat To Global Markets

It is hard to imagine anything could overshadow a looming Greek exit from the eurozone, but leave it to China to do it.

Analysts and economists everywhere Wednesday morning are now pointing to the ongoing crash of Chinese stocks as a huge new threat to global stock markets.

“The growing issue now is that losses are beginning to ripple over to international investors,” said Scotiabank economists in their morning note.

The CSI300 index of major companies in Shanghai and Shenzhen closed down 6.8 per cent on Wednesday, while the Shanghai Composite Index plummeted another 5.9 per cent, bringing its losses since the mid-June peak to 35 per cent now.

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In a show of just how afraid companies have become of the crash, 1,476 stocks out of 2,808 listed companies in China, which represent some $2.6 trillion worth of equity (for now), have suspended trading. There has been…