China's stock market plummeted more than 8% today in one of the biggest drop-offs of the decade. A trading tax increase intended to cool a boom that drove stocks up over 50% last week has set off widespread worry. But unlike the February 28 skid that depressed worldwide markets, today's slump appeared to have little effect on other Asian exchanges.
The Shanghai Composite Index dipped 8.26%; the Shenzhen Composite was off 7.85%. Front-page editorials in major financial newspapers today were meant to reassure stockholders that the long-term outlook remained positive, reports the Financial Times—but selling continued, indicating that investors are wary of changes in government policy and renewing fears of a stock-market bubble.