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Stock market crash in China, according to economists not expected to hurt Chinese economy, however evidence shows massive stock market dropped in June did hurt the economy.
Chinese benchmark stock index, which rose more than 150% in less than a year dropped almost 30% starting June, wiping out trillions of dollars in valuation.
Data shows retail sentiment has been hurt by the drop. Passenger car sales in China registered first drop in at least 2 years. Sales slipped 3.4% in June from a year ago.
Chinese government has now tougher job to stem a stock market rout and revive a slowing economy.
According to Passenger Car Association (PCA) slowdown is likely to stay as retail segment has been hit hard in this stock market rout amid economic slowdown.
Expect Peoples Bank of China (PBOC) to adapt further measures to revive sentiment and ease debt burden.
