by Chris Becker
Or not? The Shanghai Composite is down 2.6% at the open – maybe time to arrest some more reporters?
If Chinese authorities are to be believed, we finally know the cause of the country’s stock market woes: a single reporter. In a video segment aired by China’s state television broadcaster, journalist Wang Xiaolu confessed to fabricating a “sensationalized” story about the stock market and claimed responsibility for having “caused panic and disorder” among China’s investors.
At issue is a story Wang wrote for Caijing on July 20, in which he reported that China Securities Regulatory Commission was looking to end interventions designed to prop up share prices.CSRC denied the report, which was removed from Caijing’s website last week. CSRC blamed Wang’s piece for a massive drop in the stock market in late July, which sparked market woes that continue today.
The ASX200 is falling over just before lunch, now down almost 1% in line with Chinese shares. Should we be looking over our shoulders here at MB too? Or can we just blame the Pascometer again?