The $600bn reason why China’s stock market crash might get a whole lot worse.

https://www.businessinsider.com.au/why-chinese-stocks-have-crashed-in-2018-2018-10

• Chinese stocks have lost more than 30% of their value since the start of 2018.
• Fears of a slowing economy, rising debts and the impact of US President Donald Trump’s trade war have all played a role in pushing
  the Chinese market lower.
• However, a wave of forced selling of company shares could see the market drop even more.
• Hundreds of Chinese companies use their shares as collateral for loans, and are forced to sell when their share price drops below certain levels.
• Analysts believe this trend is likely to exacerbate the major declines already seen in Chinese markets this year.