China Stock Volatility Continues

Chinese equities remained volatile Tuesday following an initial stampede out of the market, with analysts cautioning that there is no clear end in sight to the drama.

“China is probably one of the most, if not the most, margin financed markets of all time – so comforting yourself that the unwind is done – because we’ve seen a lot of that unwind in the past couple of weeks – is probably somewhat premature,” Chris Konstantinos, director of international portfolio management at Riverfront Investment Group, told CNBC.  “[Also], I still don’t think you’re at a position where you’ve really got a lot of valuation support,” he added.

The benchmark Shanghai Composite opened down over 4 percent on Tuesday, swinging between losses and gains over the course of the morning session, as investor sentiment remained shaky despite a fresh commitment by Beijing to put a floor under the market. The index traded down as much as 5.1 percent.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.