Source: CCTV.com

12-27-2008 11:14

We often say stock market is the barometer of the country's economy. China's stock market has experienced a roller-coaster ride in 2008.

The indices have dropped over sixty percent so far. The loss is even more than the US market which was at the centerpiece of the economic crisis.

The indices have dropped over sixty percent so far. The loss is even more than the US market which was at the centerpiece of the economic crisis.

The benchmark Shanghai Composite index hit a high of 5522 in the second trading week of 2008, but then it turned around and started a year-long bear run.

The index nose-dived to around 3000 in April, and further sank to below 2000 after the Olympic Games in August.

The lowest point of 1664 was touched in late October. Investors driven in by the rosy gains in 2007 found themselves suffering from big losses. Even institutional investors could not escape the sharp fall.

Analysts say the worsening macro economic environment is to blame.

Zhao Xijun, Deputy Dean, Financial and Securities Inst., Renmin Univ., said, "The sub-prime crisis started last year and is getting worse. It has a profound negative impact on global financial markets, and real economy. And the recession of the US economy starting from the fourth quarter, as well as the global economic downturn both have a big impact on our export and economic growth. The change in the economic environment has affected investors' state of mind and companies' performance. The stock markets are thus impacted."