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1. Article No.

1: Key Points

[Counting the Cost] What's behind China's stock market


meltdown?, Aljazeera Saudi Aribia News, 09JAN16
The poor economic conditions, tensions after North Koreas nuclear
missile test, and row between Arabic world and Iran has badly affected
China economy, hence, China stock exchange abruptly and
continuously fall despite government intervention.
The China stock exchange streaked off up to $3 trillion within three
weeks. The reason was estimated as a curtail volatility and devaluation
in Chinese currency (i.e. Yuan).
The quarrel between Arabian countries and Iran was due to diplomatic
ties with Tehran and later on escalated based on sects (i.e. Shia cleric).
As, both courtiers hold the one-quarter of the worlds proven oil
reserve, therefore, Saudi-Iran crisis can cause another Cold War.
Further, Sri-lank has opened horizons for foreign investment, which
tends to increase the competition for china economy in the form of
tourism and development.
2. Article No. 2: Key Points:

[China] Chinese markets suspended as shares plunge, Aljazeera China


News, 04JAN16
In 2016, Chinese stock markets forcing exchange to suspend trading,
resultantly, the Chinese stock markets have tumbled 7%. Further, fall
in Chinese Yuan has increased concern about striving economy.
The blue chip CSI300 index has ended down 7% at 3470 points, even
though the Shanghai composite index declined 7% to 3297 point.
Further, Hong Kong index drop down up to 3% in reaction. This
situation led the investor to dump their stock before expiration.
The said crash deceptively elicited deepened trading, while the
prompted of high level crash in stock exchange has panicked liquidity
with surprising experience.
3. Relationship between Articles and Finance Course -3100:

Before establishing the relationship between the articles and course contents, it is very important
to highlight the economic as well as financial perspective. In this regard, It is pertinent to
mentioned that the above both articles are predicting the fluctuation and its impact on the
financial / stock markets. When the natural reserve affected (such as incident of spat between
two largest oil producing countries are discussed in articl-1), ultimately, the financial crises
happened in the economy; and resultantly, the stock market affected.
The above both article discussed the economic instability in the China economy due to local and
international. The internal factor are also cause and effect of international factors. Due to spat
between oil, producing countries has severely affect the overall world economy. Hence, Chine is
one of those countries, whose economy was beaten adversely to trillion dollars. Moreover, China
currency also devalued as the result of stock volatility.
When the price of the natural reserves increases, ultimately, the financial crises happened in the
economy in the shape of inflation; and resultantly, the stock market affected. Hence, by keeping
in view of the market position, the FIN 3100 predict the different economic and financial
indicators which helps us in realization of the essentials to build these theories and models
pertinent to financial markets and emphases on natural resources and their impact on economy.
Further, the concepts and thoughts concerning interest rates, monetary policy, the money supply,
and the Federal Reserve provide are included in this course. Moreover, it also helps us in the
application of theories regarding debt, equity, and derivatives markets.

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