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Economy

Shanghai Composite Drops 5.3% as Nikkei Ends Down

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By Douglas A. McIntyre Updated Published
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Worry about a slowing economy and a future lack of credit in the market caused the Shanghai Composite to be crushed — down 5.3%. Related worries, which also concerned those about the possible end of QE3, dropped the Nikkei by 1.66%, and Europe opened flat. Data on the German economy is due out later today.

According to MarketWatch:

Short-term interbank interest rates in Shanghai, which hit record highs on Thursday, extended their drop from levels seen on Friday but remained above the 6% level Monday, according to Dow Jones Newswires. This fed worries that the People’s Bank of China may keep those rates at a high level.

“The worst of the liquidity crunch may now be behind us, but we believe interbank rates will stay at elevated levels until at least the second week of July,” said Standard Chartered China economist Stephen Green.

“The longer this policy lasts, the more concerns about banking-sector stability will be raised. It may also cause slower credit growth in the second half,” he said.

However, the interbank rate may not matter much if data from China point to slowing of GDP growth at 6% — or less.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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