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NyIsha walker
English III
7 December 2015
Chinas Train of Reaction
China itself is the second largest economy in the world and has a major impact
on other world economies. Chinas main index stock called The Shanghai Composite
dropped thirty percent and overall stocks lost 3.9 trillion in value. Chinas stock market
had a rough collapse, the biggest one yet since the Great Depression, (Thompson Daily
Mail). This crash has caused Chinas earning this year to be wiped out.
Chinas stock dropping put Asian Crisis level at an all-time high (Abbruzzese).
Not only is the trade and stock market at high risk but also oil. The oil prices have
plunged as a global selloff. Chinas stock market trades with many countries, so not only
is Chinas economy in trouble but also the countries they trade with such as the United
States, Europe, and South Africa. Many of the global investors who invest in Chinas
stock wont directly be affected, although they feel that Asian stock market wont be a
reliable investment for them to take part in. Investors must also remember that there are
other big things in china including the up and downs of the stock market ( London ).
Another main issue that this stock fail could face is it will turn to be a broader slowdown.
South Africa being that they have their own issues are at great danger due to the
failure of chinas market. They will feel the crisis at a secondary hand impact on their
own stocks. Emerging-market currencies from the South African rand to the Malaysian
ringgit are tumbling (World Market Thompson). Not only is Chinas crash affecting a
country alone but due to South Africas dropping its also affecting Malaysian. African

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states could see their economies shrink, government coffers running dry and eventually
countries taking on more debt (BBC). Being that China at low demands that means for
Africa trades less and earns less.
Many American companies depend on Chinas market because China is
Americas top country they import and trade from. Foreign trade is mainly between the
U.S. and China and said to be the largest in the world (CNN Money). Chinas crisis
does affect the United States although its not by much. Considering that America is so
intertwined with china it does so little impact. America could become at great risk if
chinas decline continues to ripple and hit the shores of the US (Abbruzzese Mashable).
An American company called Apple is at top at place they consider bright point with the
sales in china. So, if the stocks continue to decrease theyll soon start to hit a dent into
those investments of Apple.
In the effects of Chinas crash European economy is down four to five percent.
European countries with the strong connection with china have suffered several loses in
their stock markets. Although overall all EU member have seen a big decrease in
numbers. Germany being the main trade engine with china from the European
community.
The Asian stock market has been degrading over time and was lead to where
they were wiped out of an entirety of saving through the years. It was said to be that this
was the largest stock market crash for China since the Great Depression. Since the
action of the crash China still havent recovered from the depths of the crash. Theyre
still dramatically cautious because they dont want to have a repetition of the crash.
Although as Chinas financial market develops its stock market will become more stable.

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As of Black Monday the charts of stocks in china are gradually returning to its normal
and daily balance of numbers.
I chose my topic of the failure and impacts of the Asian stock market of china
because Im very familiar with China and its everyday struggles. My dad was has lived
in Beijing, China for a few year to study abroad. Being that China faces a lot of
everyday struggles I chose one that not only impacts China but other countries too.

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BBC
Chinas economic crisis will affect Africa Aug 27th 2015.
London, D.D. The economist,
Was the crash that big August 28th 2015.
Thompson, Mark. CNN Money,
World market plunge as china stocks crash August 24th 2015.
Schoen W, John, CNBC
Who does this crash effect? July 8th 2015
Allen, Katie, The guardian,
Why is Chinas stocks falling? August 24th 2015.
Lim J, Paul. CNN Money.
How Chinas stock market crash affects you July 8th 2015
Tomkinson, Simon. Daily Mail,
Chinas stock market crash July 8th 2015
Kim, Susanna ABC News
Largest stock crash since Great Depression July 8th 2015

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Works cited

Mark Thompson CNN Money world market plunge as china stocks crash aug 24 th
2015
D.D London The economist Was the Crash that big Aug 28 th 2015
Katie Allen the guardian Why is chinas stocks failing Aug 24 th 2015
Paul J Lim How chinas stock market crash affects you July 8 th 2015
BBC Chinas economic crisis will affect Africa Aug 27th 2015