ShippingWatch

Chinese stock collapse creates new insecurity in shipping

The slowdown in growth in China seems to be part of the explanation for the largest price slump in the Shanghai index since February 2007 which the Chinese stock exchange experienced on Monday.

Photo: Georg Hammerstein/POLFOTO/ARKIV

The value of shares on the Chinese stock exchange has plunged further this Monday in the biggest dive since before the financial crisis. The trend-setting Shanghai Composite closed at negative 8.5 percent and the vast majority of the decline occurred in the last hour of trade. This is the biggest drop for the Shanghai index since February 2007, reports news agency Ritzau Finans.

Part of the explanation for the massive financial unrest seems to be increased uncertainty about the economic development in China, which especially the already very pressured dry bulk carriers keeps a worried eye on. The Chinese players are focusing again on the slowdown in national growth. While Friday offered disappointingly low PMI numbers, the drop on Monday in profit from Chinese industry of 0.3 percent in June is the cause for concern.

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