According to Reference News on August 25, Foreign media said that China's stock market suffered a "black Monday" and that China's central bank is ready to cut its bank reserve requirements. German experts pointed out that although the 8% drop was quite shocking, the situation was still within the control of the Chinese government.

On August 24, Deutsche Welle said Black Monday in worldwide stock markets, reported in <Is there a card in Beijing when the stock market plummeted? >. The Shanghai Composite Index plunged 8 percentage points, the biggest decline in eight and a half years, and all gains have also fallen back to a five-month low since this year, and The shenzhen component index and the hang seng index also fell about 5 per cent. stock market tumbled across The entire Asia-Pacific, with Tokyo Stock Price Index falling more than 5% and Singapore's stock market falling to a three-year low. In Europe, the German stock market also started off badly, with the Dax index falling more than 3% below the "magic limit" of 10,000 points.

It will take time for the pension "entering the market" policy to work.

According to the report, the sluggish growth of China's economy over a period of time has caused panic in the market. As the PMI hit a record low,The financial meltdown in the manufacturing industry currently and weak exports, which makes the market lack confidence in the realization of the economic growth target proposed by the Chinese government. Despite this, financial expert grocer still believes that if we raise the slump of China's stock market to the height of "crisis", it is overstated: "people expect that the Chinese government may still succeed in stabilizing the stock market and re establishing market confidence. The People's Bank of China must respond quickly. It has already sent out a signal to increase liquidity in the financial sector. From now on, it still has plenty of room for action. "

According to the Wall Street Journal, China's central bank is considering lowering reserve requirement ratio to stimulate the economic boom. However, this decision may not be implemented immediately, but will wait until the end of this month or the beginning of next month. The paper predicts that the reserve requirement ratio may be reduced by 0.5 percentage point, which means 678 billion yuan will be added to the credit market.

Last week, Beijing announced that it would allow pension funds to invest in the stock market. Germany's "Spiegel Online" analysis said that this measure should bring a large amount of additional liquidity to the stock market. However, this new policy does not seem to have made much contribution to the rescue of the stock market immediately. Dr. Grosser pointed out that Beijing should learn from Japan's experience in this rescue. Because Shinzo Abe has taken similar measures before, and Japan's stock market has indeed rebounded. As to whether it can also be "effective" in the Chinese market, it may take some time to draw a conclusion.

"The situation is still under control."

The report said that more worrying than the stock market chain reaction should be the impact of the uncertainty of China's economic growth prospects on Asian economies. "At present, China's economy has not really reached the stage where it is going to make a' hard landing' and there is no economic crisis. The current situation seems to be under the control of the government." Therefore, Dr. Grosser believes that the shock to Asia and the rest of the world caused by this 8% slump should be only temporary.

According to the report, the German dax index fell along with the Chinese stock market mainly because of German industry's dependence on the Chinese market, which is dominated by automobile manufacturing. At present, the economic boom within the EU has just shown signs of recovery, and the euro exchange rate has also rebounded recently. However, if the "earthquake" in Asian stock market continues, the European market may not be able to survive alone.