Stock market volatility spikes cause problems
Chinese stock market crash sparks rise in regional stock market volatility
A downward correction in equity markets across Asia late last month caused a sharp spike in equity volatility. The first indications of the markets turning more bearish followed comments on February 26 by Alan Greenspan, the former Federal Reserve chairman, warning of a possible recession in the US, as well as market concerns over the sub-prime mortgage market in that country.
The trigger point came on February 27, when the Shanghai and Shenzhen 300 Index fell 9.24% to close at 2,457.49 points
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