More than £70bn was wiped off the value of Britain’s top companies yesterday as fears grew over the state of the Chinese economy.
The UK had its worst day of trading since March 2009, the Daily Mail reports, while US stocks also crashed. It comes after Chinese stocks plunged 8.5%, the steepest fall since 2007. One local newspaper dubbed it China’s ‘Black Monday’.
The Shanghai Composite, China’s main stock exchange, was down a further 4% at midday on Tuesday (Chinese local time).
Chancellor George Osborne said he was “concerned” about the stock market collapse and warned the UK would not be immune from the fallout.
Damian McBride, former Treasury aide under Gordon Brown, claimed the crisis could prove to be “20 times worse” than in 2008.
Earlier this month, the climate in China was branded a “perfect storm” for fashion businesses as the devaluation of the yuan coupled with a clamp down on gifting and a slowing economy hit luxury brands.