China Stocks Smashed As Real Estate Rules Clamp Down On Speculation
The Shanghai Index took a beating to the tune of -3.7%, its worst drop since August 2011. This happened after the government introduced new housing restrictions including higher down payments and a 20% capital gains tax on real estate. Today, stocks like Baidu.com, Inc. (ADR) (NASDAQ:BIDU) and SINA Corp (NASDAQ:SINA) are taking a beating on this news. This news should be a global worry, as any forced slow down in China would create ripple effects around the world. In tune with this, the U.S. markets are slightly lower across the board.