Lenovo’s share price has fallen to its lowest point in two years as the Chinese stock market suffers its biggest fall since 2007.
In what has been dubbed ‘Black Monday’ on Twitter, Chinese shares dipped nine per cent to 3,209 points, sending traders and investors into a panic, pushing the price of the dollar down and knocking some £40 billion off the UK’s FTSE 100.
Traders are panicking that share prices are about to fall further, causing them to sell – and thus pushing prices down. This is causing a slump in global markets.
The panic seems to stem from the fact that China’s central bank devalued China’s currency, the Yuan, two weeks ago, raising concerns that a slowdown in China’s economy could be worse than originally expected.
Lenovo’s share price on the Hong Kong Stock Exchange fell to 6.39 Hong Kong dollars earlier today but has risen again slightly to 6.50 (around 53p) at the time of writing. Had it been listed on the Shanghai Stock Exchange, the fall could have been worse.
Since June, Lenovo’s share price has halved from 12.9 Hong Kong dollars.
The price of Lenovo’s shares continued to fall earlier this month when the company announced a series of job cuts.
Following the news, PCR’s anonymous counter insurgent retailer said Lenovo’s layoffs prove the PC market is ‘in freefall’ – read their full opinion piece here.
You can see how Lenovo’s share price has changed over the past three months below:
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