According to the Inside China Today program on the SOH Radio Network, both the Shanghai and Shenzhen Stock Exchange have plummeted following the August 8 opening ceremony. The Shanghai Stock Exchange closed at 2470 points, falling 135 points to close at a 20 month low, while the Shenzhen exchange slumped more than 6% to close at 698 points.
The continuing downward spiral of the two major stock exchanges has undermined stockholder confidence and they are now accusing the government of causing the problem by misleading traders.
Shanghai stock trader Ms. Wang told SOH that the regime is controlling the stock market and is continuing to reassure traders that the market will improve. She said state-run newspaper reports are not true and traders are being misled. Ms Wang commented that despite the recovering oil prices Sinopec stocks have fallen from $80 to $20. She said that this shows the Communist Party is controlling the stock prices.
In a previous report, Chinese political and financial commentator Wu Fan told The Epoch Times that in his opinion the market will keep plunging and the economy will collapse. People in China, including stock investors, will become destitute which may trigger large scale social conflicts.
Wu has been advising stock investors to leave the market.
