Chinese Equities: There's More Madness To Come

Since mid-June, the total value of Chinese equities has declined by around 30%. After a brief pause on Monday, prompted by a number of government initiatives designed to prop up the market, selling continued on Tuesday with the CSI300 index, the largest listed companies in Shanghai and Shenzhen ending down 1.8%. The Shanghai Composite Index fell 1.3% and the ChiNext growth board, home to some of China’s smallest, most volatile stocks slumped 5.1%.

The Shenzhen index is now up only 36.6% for the year, a month . . .

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