China stock market hit by biggest one-day fall since 2007 – time to buy bitcoin?

(from theguardian.com)

Chinese shares has tumbled more than 8% after an unprecedented state rescue effort to prop up valuations abruptly stopped, raising doubts about the viability of Beijing’s plan to stave off a deeper crash.

Major indexes had their largest one-day drop since 2007, shattering three weeks of relative calm in China’s volatile stock markets since Beijing moved to arrest a slump that started in mid-June.

“The lesson from China’s last equity bubble is that, once sentiment has soured, policy interventions aimed at shoring up prices have only a short-lived effect,” said Capital Economics analysts.

The CSI300 index of the largest-listed companies in Shanghai and Shenzhen plunged 8.6%, to 3,818.73 points, while the Shanghai Composite Index lost 8.5%, to 3,725.56 points.

Stocks fell across the board on Monday, with 2,247 companies falling, leaving only 77 gainers.

More than 1,500 shares listed in Shanghai and Shenzhen dived by their 10 percentage point daily limit, led by index heavyweights such as China Unicom, Bank of Communications and PetroChina.

(keep reading at theguardian.com)