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China Stocks Smashed As Real Estate Rules Clamp Down On Speculation

The Shanghai Index took a beating to the tune of -3.7%, its worst drop since August 2011. This happened after the government introduced new housing restrictions including higher down payments and a 20% capital gains tax on real estate. Today, stocks like, Inc. (ADR) (NASDAQ:BIDU) and SINA Corp (NASDAQ:SINA) are taking a beating on this news. This news should be a global worry, as any forced slow down in China would create ripple effects around the world. In tune with this, the U.S. markets are slightly lower across the board.

Gareth Soloway