China stock swoon could signal end of bull run | America's Markets: "Just two weeks after hitting a new high and sporting a 60% year-to-date gain, mainland China’s Shanghai composite index is down nearly 19% and flirting with a bear market.
The steep, dramatic drop is raising questions as to whether the bull market China — which has been the envy of the world the past 12 months with gains in excess of 150% — is a bubble in the process of bursting.
The wild volatility in mainland China shares, which has been fueled by government stimulus, everyday Chinese folks buying into the stock frenzy with borrowed money to goose returns, and fears of overvaluation, continued Friday.
The Shanghai composite plunged 7.4%, extending its losses since its June 12 high of 5166.35 to 18.8%. "
'via Blog this'
The steep, dramatic drop is raising questions as to whether the bull market China — which has been the envy of the world the past 12 months with gains in excess of 150% — is a bubble in the process of bursting.
The wild volatility in mainland China shares, which has been fueled by government stimulus, everyday Chinese folks buying into the stock frenzy with borrowed money to goose returns, and fears of overvaluation, continued Friday.
The Shanghai composite plunged 7.4%, extending its losses since its June 12 high of 5166.35 to 18.8%. "
'via Blog this'
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