Worst market crash in 3 years signals bumpy ride ahead BEIJING: China's stock market saw the worst crash in three years on Monday, led by the biggest slump among developers, after the government called for more steps to cool property prices. The slide came a day before the opening of the parliament session which is due to anoint Xi Jinping as the next president. The benchmark Shanghai Composite Index dropped 3.65%, or 86.10 points, to end at 2,273.40, in the worst slide in three years. The Shenzhen index shed 5.29%, or 510.39 points, to end at 9,139.75. Hong Kong's Hang Seng also plunged 1.53% or 350.81 points to 22,529.41, mostly because of the slide in Chinabased companies. The market was protesting against the government's latest move to control housing prices by imposing a hefty 20% tax on profits accrued from property sales. The existing rate is 2%. Besides, banks have been asked to raise lending rates for people who already own a house. "It is unusual for a major Chinese company to cause embarrassment to a new leader by contributing to a market crash at this time. This is almost a revolt using the market as a tool. This shows the new policy has hit them badly," a Shanghai broker, who did not want to be named, told TOI. The market development has major political undercurrents as most stock investors and property businesses in China are either owned by central or provincial government agencies or associated with leaders of the Communist Party. Major state-run banks, manufacturing and mining companies own vast chains of investment and property companies. Worst market crash in 3 years signals bumpy ride ahead - The Times of India **************************************** If the market development has most stock investors and property businesses in China owned by central or provincial government agencies or associated with leaders of the Communist Party, then it is surprising that such an embarrassing situation is being sketched when Xi is about to be anointed as the new Wang!