China stocks bounced in and out of positive territory Friday morning in highly volatile trade after a Thursday rout saw main indexes lose over 6 percent in record turnover. Both CSI300 index .CSI300 and the Shanghai Composite Index .SSEC seemed to find a floor at mid-morning, but that came after the SSEC briefly fell more than 4 percent in early trade.
The ChiNext small cap growth board .CHINEXTC strongly outperformed, however, staying in positive territory, up between 1-2 percent. The 4 percent SSEC fall, combined with the Thursday slide after a peak hit Wednesday, put the Shanghai market down over 11 percent in two trading days, considered technical correction territory by traders. But it only lasted for a blink before buyers moved back in.
Analysts were divided as to whether the Thursday slump was the beginning of a long-dreaded major correction or a fresh buying opportunity. “The correction is not yet over,” said David Dai, Shanghai-based investment director at Nanhai Fund Management Co Ltd.