Aug
27
China Equity Traders Still Wary After Year of False Rebounds
By-
Shanghai Composite Index remains near post-crash low of 2016
- Northbound buying strong in August but domestic volume is low
It’ll take more than dirt-cheap valuations and a spell of supportive policies to cajole Chinese investors to go all in on equities.
The bounce in mainland stocks over the past week hasn’t assuaged concerns. Shanghai’s benchmark index is still in a bear market, trading at a paltry 10 times forward earnings. It’s only a bad day or two away from a post-crash low hit in 2016, and turnover is near the lowest in four years. Onshore traders were more hesitant Tuesday, with stocks opening little changed despite a bullish start across Asia, including Hong Kong…
China Equity Traders Still Wary After Year of False Rebounds
