China's stock market fell so far on Monday that the Western media has dubbed it Black Monday. On Tuesday, the benchmark Shanghai composite index opened 6.4 percent lower than Monday's depressed close, suggesting more turmoil to come. But inside China, "there's little sign of public panic," reports John Sudworth at BBC News. In Beijing, the view among the people on the street is that "this is a bubble that needed to pop."
Investors around the world are not so sanguine. Part of the problem, Sudworth explains in the video below, is that "China's real is economy is facing strong headwinds." Adding to the concern is that China has been trying everything to prop up its economy, to no avail. "China's Communist Party is learning the hard way about the limits of its ability to control its giant economy, and that's partly what's spooking the markets." Maybe the Chinese will become more concerned, too, when their pension funds start playing the markets, as China just allowed. Watch the whole BBC News report below. Peter Weber
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