Chinese shares drop dramatically.

This first week of June 2007, Chinese shares dropped quite dramatically after the government increased the trading taxes. The shares as a reult dropped a high 8.3%, which meant a drop of more than three hundred billion dollars.

Many small investors quickly sold stock as they panicked, despite warnings from the government that the trading taxes increase would not have any long term negative effects.

Globally, the effects of the Chinese shares drop affected the world markets little thus and in the last few days things seem to have settled down a little and the panic for now seems over.
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