US stocks may be struggling due to oil concerns, but Chinese stocks are being pummelled due to internal macroeconomic issues. The Shanghai SSE index dropped another 6.4% today, and it did not seem to be triggered by anything having to do with oil.

Europe also volatile

US indexes were in the red overnight but recovered strongly today, and it was the same with European stocks as well, which opened lower but finished the day strong. The United Kingdom’s FTSE 100 index, as well as the Euro Stoxx 50 index fell about 1.8% in morning trade but the FTSE ended up 0.6% higher by the end of trading. The moves both in the US and Europe seemed to mimic oil, as prices slipped briefly back below $30 early in the day but recovered strongly to $31.70.

Asian markets however are moving down regardless. China’s Shanghai Index was lower for most of the day but plunged in late trading to shed over 6.4%, a 13-month low. Its peers in Japan and Hong Kong also followed suit by witnessing 2.4% and 2.5% drop respectively. Asian investors were mostly following the overnight pattern of the sell-off in America from yesterday.

China admits economy not yet mature

Last week, Chinese Vice President Li Yuanchao admitted at the World Economic Forum that the market in China was yet to mature. He stressed the importance of government regulation in curbing an excessively volatile market. Volatility, however, has refused to die down in Chinese stocks despite, and perhaps even because of repeated assurances from the government about curbing it.

2015 saw the weakest pace of economic growth in two and half decades for China. This was not particularly surprising since economists have been talking about a slowdown as the nation is becoming more burdened with growing corporate debt. There were also doubts whether policymakers would be able to take concrete measures to bring the economy out of its funk.