Hello, and welcome to this week's  Biz China. I'm Lin Lin, reporting from Beijing. Stocks are fluctuating while fears are growing up and falling down. Despite massive bailout policies by various governments, major stocks worldwide had declined sharply last week. But with a new banking rescue plan adopted by the European leaders during the weekend, hopes are revived for signs of life. So just how much more should government funding do to rescue the rocky market, and how long can the beleaguered financial system withstand the turmoil? We will continue our search for causes and effects of the unfolding crisis. Should China, the second-largest holder of US Treasury bonds, buy more for lower prices, or should it sell more to escape from the deepening strain? For all these stories, stay tuned to  Biz China.

We begin with the stock market…

The second week in September will be remembered by bankers, brokers, and investors for being the worst in stock markets. In this black week, global stocks tumbled from the start to the end. In New York, the Dow Jones average for the first time in four years, closed below the benchmark 9,000 points while the Standard & Poor's 500 extended the worst weekly slump since 2001. Europe, at the start of the week suffered the worst one-day of trade in at least 20 years. And here in Asia, stocks also fell. In China, two stock exchanges tracked steep losses despite a slight gain in the middle of the week. In the wake of the gloom, what are governments' reactions and what efforts have been made to avert a deepening crisis?  Our reporter Chen Xi has the story.

As the latest move to put a lid on the rampant turmoil, various monetary policies have been implemented. From China through Europe to the United States, leading central banks have slashed interest rates in a coordinated effort to bring calm to global financial markets. China central bank has announced cuts in both the interest rate and reserve-requirement ratio. From last Thursday, the deposit and lending rates have been lowered by 0.27 percentage points and from Wednesday, the reserve-requirement ratio will be down by 0.5 percentage points. In another step aimed at encouraging consumption in the world's fourth-largest economy, China has also temporarily scrapped the 5 percent withholding tax levied on interest income.

The loosening in monetary policy, the second such move in less than a month, highlights the government's rising concern over the slowing economy and slumping capital market. So, what an influence will the financial crisis have on the Chinese economy and what lessons have been drawn on risk control?  Let's follow our reporter Shuangfeng to take a closer look.

The snowballing sell-off is driving the global stock market down, but how devastating is its impact here on the Asian market, and given its previous experience from the 1997 financial crisis, what's China's role in dealing with the turmoil? For more on that, Biz China talked to  Dr. Jonathan Leightner, professor of economics with Augusta State University in Georgia and a current lecturer in China.

Before we go, a quick look at  major business stories from around China.

And with that, we have come to the end of another edition of  Biz China. If you have anything to say about the show, please feel free to contact us. Our email address is bizchina@cri.com.cn. Or send mail by post to English Service, China Radio International, Beijing, China, postal code 100040. You can also log onto our Web site, crienglish.com, to listen to this or any of our previous shows online. I'm Lin Lin in Beijing. Goodbye.