The Chinese market crash began in June 2015 with the so-called Chinese stock market bubble bursting. In just four weeks, Renminbi currency shares, also known as A shares, lost about 30 per cent of their value on the Shanghai Stock Exchange.
Serious aftershocks occurred in the time after, such as the August 24 “Black Monday,” which — according to the Guardian — sent world markets spinning.
The main cause of all of this was that “over the past year, investors poured more and more into Chinese stocks, even though economic growth and company profits were weak,” says CNN Money.
In a nutshell, stock prices kept rising as mom and dad retail investors kept buying, while the real stock value connected to economic growth kept falling.
In September 2015, IMF chief Christine Lagarde warned that global growth would possibly slow down, and that emerging markets should be on the alert after the previous “shockwaves from China’s slowdown.”
She also added: “Asian economies could continue to lose momentum, following the recent turmoil on global market,” which resulted in fears over China’s economic prospects.
And indeed, recent signs of a slowing Chinese market are showing in the retail sales sector. Especially, luxury brands that in the recent past profited from consumer habits on the Chinese market are now suffering the most.
Luxury brands slump as China's economy slows http://t.co/Ctl8SKiYo4
— Jacob Yount (@jlmade) October 17, 2015
In between all the slowdown, there seems to be a sector on the Chinese market that is picking up quite well.
Chinese demand for illegally traded but highly lucrative totoaba bladders is growing.
According to a recent statement by Newsweek, the Vaquita might not be able to withstand the growing demand. This smallest and rarest aquatic animal of its sort belongs to the species of dolphins and whales, and is native to the upper Gulf of California. These fish, known as totoabas, are considered endangered by the International Union for Conservation of Nature.
Fishermen cut open each fish, remove the sought after organ and “toss the rest overboard.” The trade of totoaba fish is illegal and has been prohibited under the Convention on International Trade in Endangered Species of Wild Fauna and Flora since 1976, according to Newsweek.
— Newsweek (@Newsweek) October 17, 2015
Asian markets closed higher on Friday, with China leading the pack. The Shanghai Composite was up 1.60 per cent ahead of Japan’s Nikei 225 that was up by 1.08 per cent, followed closely by Hong Kong’s Hang Seng Index that was up by 0.78 per cent. But even with the slight rise at the close of the week, there is still a lot of loss and even more trust to be made up for.