China Equity Markets Wobble Yet Again

By Karen Yeung ( SCMP HK) @klky99 

Mainland Chinese markets resumed declines on Monday amid concerns increasing regulatory oversight could tighten liquidity.

“With regulators intent on deleveraging, this recent market collapse may be a sign of things to come,” said Stephen Innes, APAC head of trading at Oanda, in a research note.

“As Beijing moves to standardise financial markets, it will likely lead to more short-term capitulations as investors are now required to face the inherent risk from high-yielding volatile assets as opposed to relatively risk-free returns as more financial reforms take hold.”

The Shanghai Composite Index fell 0.88 per cent, or 29.51 points, to 3,324.31 while the CSI 300 – which tracks large caps listed in Shanghai and Shenzhen – slid 1.40 per cent, or 57.52 points, to 4,046.68.


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.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes