Summarizing The "Black Monday" Carnage So Far

It's officially Black Monday, if only in China for now.

Black Monday! #ChinaStocks join global panic selloff, dive 8.5%, worst since Asian financial crisis at midday pic.twitter.com/nLHoFf34bV
— China Xinhua News (@XHNews) August 24, 2015

We warned on Friday, after last
week's China rout, that the market is getting ahead of itself with its
expectation of a RRR-cut by China as large as 100 bps. "The risk is that
there isn't one." We were spot on, because not only was there no RRR
cut, but Chinese stocks plunged, with the composite tumbling as much a
9% at one point, the most since 1996 when it dropped 9.4% in a single
session. The session, as profile overnight was brutal, with about 2000
stocks trading by the -10% limit down, and other markets not doing any
better: CSI 300 -8.8%, ChiNext -8.1%, Shenzhen Composite -7.7%. This was the biggest Chinese rout since 2007.