After Chinese stock market dropped by 9 percent on Tuesday, the suit was followed by the DJIA in the U.S. and by the European stock markets. Russian stock market is the next in line to undergo the test of what’s worth.

Mainland Chinese shares kicked off the carnage, falling nearly 9 per cent amid fears that the authorities were planning a crackdown to cool the market’s exuberance. Traders saw the drop partly as a symptom of broader concerns over global valuations.

Russian market analysts say that the global stock market slowdown doesn’t necessarily pose threat to domestic market, but they say that the situation will nonetheless prove to be a test.

If developed country investors start pulling money from Chinese market, they are unlikely to bring them to Russia, because such investments would be ineffective under present conditions.

Investors are likely to pull their funds back to developed market. Russia may suffer from a certain associated backlash and see some of the more speculative investors take their money off the market as well.

Another threat for the Russian economy posed by the tumbledown of Chinese stock market is that it may lead to slowdown of Chinese economy — and that is sure to have a downward effect on the global oil prices.

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