KOSPI · August 2, 2004
Three months as China hit the brakes
-23.13%
peak-to-trough, the whole slide
69 trading days · 2004-04-23 → 2004-08-02
still below that peak today
What happened that day?
- From the high on 23 April 2004 to the low on 2 August, the KOSPI fell 23.13% over 69 trading days
- China's premier said overheated investment would be firmly restrained, followed by direct controls on bank lending and capital spending
- The thirteen-month advance had been built on Chinese demand, so it reversed fast once that premise moved
- The sectors that had risen most, steel and chemicals, fell hardest
- Oil passed forty dollars a barrel in the same period, a direct burden for a country that imports all of it
- The US beginning to raise rates that June added to it
- 2 August was the bottom, and the advance that began there ran into the following summer
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.