CHINA-ECONOMY: CHINESE STOCKS DROP
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Chinese stocks registered a major drop on October 8 as traders returned to work after a weeklong holiday. Losses on major indexes in mainland China were as high as 4.8% in a major market rout, with the China A50, which includes major companies from both the Shenzhen and Shanghai indexes, as the biggest loser. The Shanghai Composite lost 3.7% of its value, while the Shenzhen Composite was down just over 4% at the close of the day's trading. The main driver, according to analysts, appears to be the failure of markets to believe that fresh stimulus from the People's Bank of China (PBoC) will help prevent US President Trump's trade war from causing an economic slowdown in China. The PBOC cut its required reserve ratio for Chinese banks by 1% over the weekend.
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