Monday, June 29, 2015

Signs of the punch bowl...

...getting empty.

China’s main stock index is in freefall after enjoying a bull run that saw the Shanghai Composite gain 106pc in the past year on a wave of exuberance among investors lured by valuations, talk of initial public offerings and the expectation that Beijing will eventually launch a massive fiscal stimulus programme to boost the economy.
On Friday, the blue-chip CSI 300 index plummeted 7.8pc, while the smaller Shenzhen Composite declined by the same margin to post its lowest close since May. In the past two weeks around $1.2 trillion (£600bn) has been wiped off the value of Chinese listed companies since the market reached its peak on June 12.