China stocks swing wildly as markets fret over crisis risk

Chinese stocks plunged to their lowest since the global financial crisis on Tuesday after the central bank turned off the taps for cheap cash, but markets rallied late in the day on hopes authorities would step in to prevent a crisis.

The immediate fears of a cash crunch that saw banks scramble for funds as interest rates spiked last week have moderated, but the expectation conditions will remain tight has raised doubts about banks’ earnings and the outlook for the whole economy.

via Business feed http://www.scmp.com/business/money/stock-talk/article/1268659/china-stocks-swing-wildly-markets-fret-over-crisis-risk