China's markets suffered another slump today as investors signalled uncertainty about future prospects for its exchanges.
The Shanghai Compisite index closed down 8.3 per cent after a report published in the China Securities Journal warned of "extremely unusual" prices within "structural bubbles".
These slips follow last week's 6.5 per cent drop after the Chinese government tripled the cost of stock transactions – in what many believe could be the first in a series of measures designed to curb rising prices.
Now a capital gains tax has been mooted as another means of dampening growth through central intervention, as officials seek to prevent a sudden collapse in confidence.
In March a similar sell-off occurred following speculation over tough new measures to try and stop investors buying shares with borrowed cash, affecting markets around the world. The FTSE 100 index lost over five per cent of its total capital in five days of sustained losses at the beginning of March.
Total market value has now grown by 50 per cent in 2007, leading former US Federal Reserve chairman Alan Greenspan to express his belief last month that the growth is "clearly unsustainable".
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