China's economy again has made news as the country works to deal with a volatile stock market and slowing exports. Those issues have influenced markets around the world.
China's benchmark stock index, the Shanghai Composite Index has been decreasing since June when it reached a high of over 5,000 points. As of Wednesday, the index had decreased more than 40 percent. Stock prices have lost and gained value sharply.
Financial markets around the world have shown increased volatility in recent weeks, in part, influenced by events in China. Indexes for stock exchanges in Japan, Hong Kong, and South Korea have all shown volatility. And share prices in major European indexes in Britain, Germany and France have decreased in the last month.
China has taken several steps to try to put a halt to slipping share prices. The government made billions of dollars in loans available to banks and money market funds. In July, stock exchanges halted trading of 1,400 listed stocks in an effort to stop prices from falling.
On Tuesday, China's central bank again moved to make borrowing easier in an effort to support the economy and stop sharp decreases in the country's stock markets. The bank reduced a main interest rate by .25 percent to 4.6 percent. China also reduced the amount of money banks must hold in reserve giving banks more money to lend. The People's Bank of China also provided more than $23 billion in short term loans to increase money available to banks and investors.
Earlier this month, Chinese officials devalued the country's currency, the yuan. Within two days, the yuan lost more than three percent in value. That reversed years of slow increases in the exchange rate of China's currency. The devaluation came on growing evidence that China's economy is slowing.
In early August, China reported that its exports dropped by 8.3 percent in July compared to the year before. That was more than expected and added to concerns about China's economy.
Slowing growth in China, the world's second biggest economy, is not unexpected. Kevin O'Leary of O'Shares Investment says growth predictions for China may have to change.
"Instead of thinking of China growing at 8 percent, we think, it's going to grow 5 or 6 percent," he said. "That's 20 percent less growth than anticipated."
Economist Nicholas Lardy is with the Peterson Institute for International Economics.
"I think the main reason China matters so much is it's the second biggest economy in the world. It's the second largest trading economy, so if China's economic performance suffers, the rest of the world is going to pay a price."
I'm Mario Ritter.
There have been riots before and the situation is volatile.
He is trying to improperly influence a witness...
The truck industry is a benchmark for the economy.
The prices of polymers and suchlike materials will decrease.
The new proposal would create a reserve pool of cash.
We are not going to devalue the pound. I have made that crystal clear.
7.reverse vt.& vi.（使）反转
The company had to do something to reverse its sliding fortunes.
What Jeff did was to anticipate my next question.
1.As of Wednesday, the index had decreased more than 40 percent.
The regulations come into force as of today.
2.In July, stock exchanges halted trading of 1,400 listed stocks in an effort to stop prices from falling.
in an effort to企图，努力想
The scandal was hushed up in an effort to save face.
3.It's the second largest trading economy, so if China's economic performance suffers, the rest of the world is going to pay a price.
pay a price付出代价
Slovenia will have to pay a high price for independence.
中国的基准股票指数——上证综指自6月超过5000多点的高点以来持续下跌。截止到周三，该指数已经下跌了超过40% 。股价出现急剧上涨和下跌 。
最近几周，世界各地的金融市场都更加动荡，在某种程度上是受到中国的影响。日本、香港和韩国股市指数均出现波动 。过去一个月，英国、德国和法国等欧洲主要股指也有所下跌 。
中国已经采取了若干措施阻止股价下跌。政府向银行和货币市场基金提供了数千亿美元的贷款 。7月，证券交易所暂停了1400支上市股票的交易以阻止价格下跌 。
周二，中国中央银行再次采取措施，放松信贷以图支持经济，阻止股市急剧下跌。央行主要利率降低0.25个百分点至4.6% 。中国还降低了银行的存款准备金率，让银行有更多资金放贷 。中国人民银行还提供了超过230亿美元的短期贷款，向银行和投资者提供更多资金 。
本月初，中国官方宣布人民币贬值。在两天之内，人民币贬值了超过3% 。这扭转了中国货币汇率多年来的缓慢的增长速度 。越来越多的证据表明中国经济增长速度正在放缓 。
作为世界第二大经济体，中国的经济放缓并不意外。O'Shares投资公司的Kevin O'Leary表示，对中国的经济增长预期可能必须做出改变 。