Global investors do not have a massive amount invested in the Chinese stock market. But when China's major share index falls 8.5 percent in one day the world's investors take notice.
European markets fell more than 2 percent and Wall Street is down by almost 1 percent this morning.
That follows what was the worst day for the Shanghai Composite Index since 2007.
Investors in China are worried about a growing amount of weak economic data. Yesterday a report was released showing industrial profits fell last month after two months of gains. That followed the release of data showing manufacturing activity had weakened again.
But an equally big concern for Chinese investors is that their government's recent efforts to boost the sharemarket appear to be running out of steam.
After the market closed regulators announced they were prepared to buy shares and they again warned short sellers to be careful.
But there are rumours that the International Monetary Fund has voiced its concerns to the Chinese authorities about their meddling in the market.
Here is my chat with Paul Henry this morning about the big slump on China's sharemarket.
The concern about the Chinese economy has accelerated the sell-off in commodities.
West Texas oil has slumped to fresh four month lows, trading at just below US$48 a barrel.
If it falls much lower it'll be at levels not seen since 2009.
Commodities prices for copper, iron ore and dairy are all at five to six year lows.
European stocks fell 2 percent and the US market closed near a six month low.
The Dow Jones Industrial Average fell 127 points, or 0.73 percent, to 17440.
The CRB Commodity Price Index has fallen to a seven year low.
Some are concerned the fall in commodity prices could be a signal for an impending worldwide recession.
Gold is usually considered a safe haven.
But it is languishing at a five year low, at just below US$1100.
There are reports some investors who lost money in the Chinese stock market are now selling their gold.
Yesterday Oceana Gold announced its Globe Progress open cast gold mine near Reefton will be closed in October.
It was originally meant to be mothballed in 2012, but the closure was pushed back more than once.
Oceana Gold decided to close the mine after a 25 percent drop in gold prices. It has been estimated that this will cost the West Coast economy about $45 million in direct and indirect benefits for every year that the mine is idle.
One hundred and twenty people are employed there. Six staff will stay on to maintain the mine.
This is terrible news for the West Coast. It follows the loss of hundreds of jobs in the coal mining sector.
The Kiwi is trading at 66.08 US cents, up from 65.75 yesterday morning.
It is trading at 90.83 Australian cents, up from 90.30 yesterday.
The NZ dollar is 42.47 pence, almost unchanged from a day ago.
The Kiwi is 59.56 Euro, down from 59.87 yesterday.