Indiana Grain Company, LLC

Posted: 08/19/09

By: tomgrisafi

China's stock market crashed before the economy's steep slowdown last year, and it soared before the strong recovery earlier this year. So does the current sell-off presage fresh economic troubles?

China's benchmark share index fell 4.3 percent on Wednesday and is now down 20 percent from two weeks ago, sending tremors through equity markets worldwide.

European stocks tumbled and US stock futures fell in reaction to the China selloff. Some market pros think that China is a good indicator of where stocks are headed.

"They seem to have peaked out before we did," Art Cashin told CNBC. "They're a bit of a leading indicator."

The collapse in Chinese share prices came at the same time as analysts from Goldman Sachs to Citibank were upgrading their already bullish forecasts for China's GDP growth.

Source: Reuters, CNBC

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