China stock market rocked by forced sellers
“Chinese shares extended the world’s deepest slump and the yuan touched its weakest level in almost two years, testing the government’s ability to maintain market calm as risks mount for Asia’s largest economy. Fears of widespread margin calls fueled a 3 percent tumble in the Shanghai Composite Index, which sank to a nearly four-year low as more than 13 stocks fell for each that rose.” [Emphasis added]
USAGOLD note: The Shanghai stock market is not alone in its exposure to margin debt. Wall Street margin debt – highlighted in today’s DMR to be released later this morning – is at record levels.