Why Did the CSI 300 Fall 10% Before Recovering?

The video discusses a market anomaly known as a 'fat finger' that led to a brief flash crash in the CSI 300 futures market, causing a 10% decline. Despite this, the underlying index remained stable, trading higher in China. Concerns are raised about state intervention in the equity market. The video explains that fat finger errors occur due to illiquidity.

What is a 'fat finger' error in the context of financial markets?

• An error due to incorrect data entry

• A deliberate market strategy

• A type of market manipulation

• A software malfunction

How long did the flash crash in the CSI 300 futures market last?

• Ten minutes

• One hour

• One minute

• One day

What was the effect of the flash crash on the underlying CSI 300 index?

• It resulted in a market rally

• It caused a significant drop

• It had no effect

• It led to a temporary halt in trading

What is a concern mentioned regarding the equity market in China?

• Lack of foreign investment

• Decreasing export numbers

• State intervention to support the market

• High inflation rates

Under what market condition are 'fat finger' errors more likely to occur?

• Stable market conditions

• Low liquidity

• High volatility

• High liquidity