The share market crash, dubbed ‘Black Monday’ has hit New Zealand.
Yesterday the New Zealand share market suffered its worst one-day fall in four years, losing more than 2.5 per cent in value after Chinese stocks plunged again.
This is the biggest fall in the market since August 5, 2011 when the United States was stripped of its AAA credit rating.
The reason for the drastic fall is due to China’s falling dollar and as an emerging superpower, this has a flow on affect for the rest of the share market around the world.
Investors hoped China’s central bank would cut the reserve rate to boost lending but it did not.
Experts expect the decline to continue.