Yes its going to be interesting. The book value of many companies being decreased a lot. The ability of companies to borrow and to issue shares to raise revenue has decreased. There will be margin calls but will it be dramatic enough to be detrimental to Chinese investing abroad?
One of the biggest problems they now face is loss of confidence in the stock market. This could go for some time..
The positive side could be less Chinese ownership of Australian agriculture and commodities!
On a side note Iron ore down 11% overnight. Now below production costs for some. Unless they have good hedging contracts we will see closures.
