1) Stocks pulled back from the brink Thursday, with the benchmark Shanghai Composite index gaining n...

1. China's stock market crash...in 2 minutes
1) Stocks pulled back from the brink Thursday, with the benchmark Shanghai Composite index
gaining nearly 6%.
2) That doesn't mean the crisis is over. Trading was extremely volatile, and investors are still very
nervous.
3) The root cause: Over the past year, investors poured more and more into Chinese stocks, even
though economic growth and company profits were weak.
4) Retail investors -- think mom and pop, average folks -- were the most enthusiastic. A classic
bubble developed.
5) The bubble popped on June 12, and since then, the Shanghai Composite index has lost about 30%
of its value. The smaller Shenzhen Composite is down around 40% over the same period.