Chinese Market in Jeopardy?

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If you haven’t heard the news or seen people on Facebook changing their profile pictures into a yellow band, you must be living under a HUGE rock.

There is currently a huge protest going on in HongKong called “Occupy Central”. The citizens of this beautiful country are fighting for democracy. They do not want China to determine who can be a candidate in the upcoming 2017 elections (BBC 2014).This is by far one of the biggest protests that ever happened in HongKong.

HongKong is one of, if not the largest free market economies in the world. Due to this protest, stocks and the flow of money has slowed down tremendously. This is a huge problem for investors and shareholders all around the world who have placed money into the Chinese market because they can do one of two things:

  • Dump/keep their stocks

Which will lead to one of two outcomes:

  • If the protest goes on for much longer or get worse, the stockmarket might crash and this might affect the WORLD’s economy negatively because China is such a strong influence in the marketplace.
  • If the world dumps all their stocks, the same problem will happen. Stocks drop, world economy affected, might lead to recession/depression.

Let’s give our full support to HongKong and hope that the situation will soon be resolved.

Workcited

http://www.usatoday.com/story/money/markets/2014/09/29/stocks-monday/16418841/

http://www.bbc.com/news/world-asia-china-29054196

http://www.cnbc.com/id/102045300#.

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