The exodus of Chinese stocks continued today as the Shanghai Composite fell 5.9 percent. In an attempt to tame the massive sell-offs, Chinese officials have pulled out all the tricks in the bag.
Policy makers froze trading on over 1,300 companies, which account for nearly 40 percent of China's total stock market, and ordered state owned companies not to sell shares. Government authorities went as far as increasing the types of assets - to include houses - that investors can use as collateral to buy Chinese stocks.
The PBOC even made an effort to restore the once rock solid investor confidence by pledging to provide the market with "ample liquidity" to prevent a systematic financial crisis. Remember, fundamentals drive markets and China's stock market has not been reflective of a slowing economy, doubling in the last year.
Today's U.S. markets will be anxiously waiting for the release of the Fed minutes, attempting to gauge if all of the Greece and China drama will delay the Fed's interest rate hike, says Voya Global Perspectives.


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