That is because roughly only 3% of the equities are held by them. The contagion effects stem from the far greater worries of investors about a slump in growth in China and its repercussions for the global demand of the People’s Republic. Nevertheless, as I see it, the price slump was not driven solely by the poorer outlook for the Chinese economy.
As you know well, the euro area banking sector is currently undergoing a secular deleveraging process. The need for deleveraging had its roots in a period of strong bank balance sheet expansion in the last few years.