China’s stock market rout entered its fifth day, posting a 1.3% decline. There have been many other five-day losing streaks for the Shanghai benchmark index before, but none come close to the recent drop in terms of scale.
Over the past five trading sessions, the Shanghai market has lost 23% of its value. Over the past 20 years, the index has never fallen as far this fast for as many days in a row. The authorities seem helpless to stem the tide, spooking investors both inside and outside China, sowing volatility on bourses all around the world.
Could the market fall further? Even when shares eventually break their losing streak, fears over the future of the world’s second-largest economy won’t go away any time soon. In the meantime, brace for more turmoil in global markets.