Consequences of China Stocks are Far Reaching

China’s four-week-long stock market rout has wiped 28 percent off the Shanghai Composite Index and also inflicted pain on Asian firms most exposed to its mammoth economy.

Korean exporters, Australian miners and Japanese tourism companies and exporters have tumbled much more than their respective markets.

Foreigners own only a tiny fraction of Chinese equities but regional companies that depend on Chinese demand, or are proxies for China risk, are vulnerable to selling.


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