Matt Phillips for The Wall Street Journal says that Wednesday’s stocks tumble was in part because of signs that policymakers in China may be making moves to reduce liquidity. As demands for loans recede, China’s pressure on the commodities markets may continue to weigh on shares.
China isn’t the first rapidly growing country to take steps to make sure growth is kept in check. Late last year, Brazil implemented a 2% tax on new foreign investment. [More on Brazil’s new tax.]
For more stories about China, visit our China category.
- iShares FTSE/Xinhua China 25 (NYSEArca: FXI)
- SPDR S&P China (NYSEArca: GXC)
- Claymore/AlphaShares China All-Cap (NYSEArca: YAO)