30% plunge in China Stock market freaking people out

China rolls out emergency measures to prevent stock market crashYahoo Finance UK

BEIJING/SHANGHAI (Reuters) - China's stock markets face a make-or-break week after officials rolled out an unprecedented series of steps at the weekend to prevent a full-blown stock market crash that would threaten the world's second-largest economy.

The government is anxiously awaiting the market opening on Monday to see if the new measures will halt a 30 percent plunge in the last three weeks, or if panicky investors who borrowed heavily to speculate on stocks will continue to sell.

In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China's state-backed margin finance company which in turn would be aided by a direct line of liquidity from the central bank.
China has also orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.

end quote from:

China rolls out emergency measures to prevent stock market crashYahoo Finance UK

 

It appears China is rolling out the Big Guns to prevent a complete crash like the one the U.S. had in 1929 right now. Speculation like China is dealing with with heavy borrowing to invest likely is at the core of this potential crash now just like the U.S. in 1929.