Journalist report could cause a collapse of the Chinese stock market
The Xinhua News Agency reported that Caijing, a journalist for Wang Xiaolu, has pleaded guilty to a stock market crash in China. A report by Wang Xiaolu, published shortly before the collapse in the Chinese securities market, contained inaccurate information, the report was based on rumors and conjectures, Siliconrus writes . It is this information, according to Xiaolu, that caused a decrease in confidence in the positive state of affairs of the Chinese stock market among traders.
Xiaolu's testimony was also aired yesterday by CNTV's China Central Television. It is worth noting that the report of a journalist from an authoritative business publication could really influence the opinion of the Chinese stock market players about the state of affairs and the decisions they make.
Now the Chinese government has moved from cash injections into the country's stock markets to punishing those whom officials consider guilty for the current state of affairs.
Now the main Chinese stock index Shanghai Composite has lost about 40%. At the same time, only in July, the stock market indicators of China's stock market rose to their maximum value in seven years.