Why Chinese stocks fell today

Why did the Chinese stock market drop 9% in a single day? Here are some answers:

China stocks post biggest drop in a decade – MSN Money: “A contributing factor to today’s market upheaval was the action late yesterday by the People’s Bank of China to raise — for the fifth time in eight months — the required cash reserves that lenders must park with the nation’s central bank. These moves are aimed at draining liquidity from the banking system and taming the growth in lending, which grew 16% year over year in January. “

As a side note, mortgage rates should benefit from this, so anticipate seeing a slight improvement in rates tomorrow.

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