A fall in Chinese equities dubbed Black Monday has prompted a special report from ING economists who warn that “things could easily get much worse before they get better”.
The eight-page report titled, The Great Fall, was released today (25 August) prior to The People's Bank of China cutting its main interest rate by 0.25 percentage points to 4.6 percent.
The report noted: “It seems like the sky is falling in, and the obvious question here is: “Where will this all end?”
"The problem is that different analysts will reach different conclusions. Most quite plausible. However, we strongly doubt that there is a definitive answer to what does not appear to be a fundamental question, but a sentiment driven sell-off,” the report said.