New Delhi | The Chinese Dragon proved to be of no help to its melting stocks which left a contagion on Asian markets including India where Sensex crashed by nearly 500 points on concerns of worsening global economy aggravated by the Greece debt crisis.
The Shanghai Composite Index closed with a loss of near 7 per cent but the crisis was so deep that trading had to be suspended in case of several companies.
There is a panic like situation among the Chinese investors who are mostly the common people as China doesnt have much of direct participation of foreign institutional investors.
In less than a month, the Chinese common people who were hooked on to the stock markets for the last one year have lost over 3 trillion dollars, one and half times the size of Indian economy.
Commentators like Ruchir Sharma, Head of Emerging Markets,Morgan Stanley Investments have described the Chinese situation as a `bubble.
Back home, the Sensex closed at 27,687.72, down 483 points and the broad based Nifty closed 8363.05, lower by 147 points.
The companies engaged in metals such as steel, iron ore and copper faced the wrath of investors concerns.
Tata Motors which gets sizeable revenue from China through sale of its premium luxury car Jaguar Land Rover suffered heavy losses.
The continuing problems in Greece added to the investors woes.
However, in the afternoon the opening trend in the European markets was positive.
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