By Matthew Deere/BloombergBloomberg A record low Chinese stock market is one of the main reasons why stocks in the world’s second-largest economy have been dropping for six straight quarters, according to the world fisheries organization.
Chinese stocks fell 10.4 percent in the fourth quarter, to 5,764.8 billion yuan ($96.6 billion), while the value of the Chinese government-owned industry fell 11.4 percentage points to $7.9 trillion.
The steep decline in the Chinese economy, coupled with a glut of foreign currency reserves and a surge in demand for commodities, has also pushed stocks into a record low.
The Shanghai Composite Index fell more than 5 percent to 1,890.4 yuan in the period ending in September.
The stock market crash in China comes as the world has been in a tizzy over a global slowdown.
In the U.S., stocks have dropped sharply since President Donald Trump was elected, and many investors are now wary of a potential economic slowdown in the U.
“The Chinese stock markets are in the midst of the largest bull market in Chinese history, which has resulted in unprecedented levels of capital flows, and unprecedented levels in new investment,” said David K. Leland, an economist at New York University’s Stern School of Business.
In the past five years, China has pumped more than $7 trillion into its economy, according a Bloomberg analysis of data from Bloomberg New Energy Finance.
The U.K. has seen a similar rally, with the pound dropping against the dollar by nearly 20 percent since the Brexit vote.
Chinese government-run enterprises are also at record highs.
They are also the largest holders of U.A.E. sovereign debt.
The country has also increased its holdings of gold, silver and copper.
China’s financial crisis in 2014 sparked the market correction.
Since then, Chinese authorities have tightened capital controls, and the central bank has also tightened interest rates, easing concerns over inflation and overheating.
The Chinese economy shrank in the second quarter of 2017 by 0.7 percent, the worst quarter since the global financial crisis of 2008.
This year is set to be the slowest growth in decades, according the World Bank.