The massive selling in Chinese stocks is stoking fears that the government there may be losing control of its carefully managed economy, said Dan Yergin, a leading expert in international politics, energy, and economics—a prospect that’s pressuring oil prices.
“We are seeing a panic in China. It goes back to 2008, when it always seemed the Chinese were really in control of their economy. They were the first ones out there with a stimulus, and now it looks like they don’t know what to do,” the vice chairman of information and analytics provider IHS told CNBC’s “Squawk Box” Wednesday.
“The Chinese economy has already been slowing from the growth that it had been before,” he continued. “The prime minister says it’s no longer high growth, its medium-to-high growth. And if it’s medium or low-to-medium growth, that’s a big hit for the oil market.”
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