The CSI300 index of the largest listed
companies in Shanghai and Shenzhen rose 2 percent in early trading, while the
Shanghai Composite Index gained 1 percent. Both had tumbled around 6-7 percent
on Wednesday. More than 30 percent has been knocked off the value of Chinese
shares since mid-June, and for some global investors the fear that China's
market turmoil will destabilise the financial system is now a bigger risk than
the crisis in Greece. Indeed, the Obama administration is worried the stock
market crash could get in the way of Beijing's economic reform agenda.
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