China's stock market is facing a crisis that is raising concerns among domestic and foreign investors alike. More than a trillion dollars of the market value of stock exchanges in China and Hong Kong evaporated this year.
Foreign investors who were once fascinated by Chinese stocks are now increasingly fleeing, with net sales reaching $2 billion last January alone. The dismissal of the head of the Chinese Securities Regulatory Commission, Ye Huiman, reflects the seriousness of the situation, with continued instability in the market. Chinese stocks and exchanges, as a scapegoat for the market collapse in 2015, according to the Economist.