U.S. stock and bond markets fell in response to the announcement from the Federal Reserve on Jan. 26 that it will soon raise its benchmark interest rate and end its asset tapering program in early March. The NYSE Composite fell 297.67 points in an hour from 2:30 p.m. and recovered slightly at the end of the day, but by only 26 points to 16,237.76. Unlike the U.S. market, the Chinese stock market had already plunged before the FOMC’s announcement. Two days before, on Jan. 25, the SSE fell below 3,500 points, setting a record for the first time when the number of stocks plunging exceeded 4,000 in a single day, while the SZSE Component Index (SZSE) fell 2.83 percent. In the early morning on Jan. 26, the four major official securities media outlets of the Chinese Communist Party (CCP) joined together to call on institutional investors to help. The front …
