China stocks on Friday posted some of their worst losses in seven years. Stocks fell with nearly 2, 000 of about 2, 800 listed companies in Shanghai and Shenzhen. Investors panicked rush out of the market.
At 9:48 a.m. The Shanghai Composite index declined 2.7 percent to its lowest level in five weeks, while the ChiNext gauge of smaller companies fell more than 20 percent in Shenzhen from its June 3 record.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
Morgan Stanley’s chief Asia and emerging market strategist, Jonathan Garner, told clients: “This is probably not a dip to buy. In fact, we think the balance of probabilities is that the top for the cycle on Shanghai, Shenzhen and the ChiNext has now taken place.”. Mr. Garner predicts the Shanghai Composite Index will fall between 2 percent and 30 percent over the next 12 months.
The Shanghai Index has risen more than 120% in the past year. According to the Sydney Morning Herald, the bull market in China turned 935 days old today. This is five folds the standard lifespan of rallies in the past.
