Shares on the Chinese stock exchange experienced their biggest loss for several years as highly leveraged speculative buyers tried desperately to unwind their bets in what is being described as a hugely speculative bubble. Trading in over a third of companies listed in the Shanghai and Shenzhen stock exchanges were suspended. The implications for leveraged investors bodes badly for Chinese banks and stockbrokers and investors are looking to the Chinese state to step up their attempts to restore order. TAM portfolios have only a very limited exposure to Chinese shares, and that which exist are blue chip stocks which are materially unaffected by the turmoil in highly speculative stocks and new issues. This is potentially a larger problem than Greece and we are watching event closely for signs of contagion to US and European financial institutions.