From ecstasy to agony on China's stock markets

In mid-June China’s stock markets rallied to seven-year highs but by the opening days of July it had all come crashing down.

If this spring showed markets anything, it’s that records are made to be broken. In April and May, A-share and H-shares rallied to new seven-year highs.

Then they nose-dived, with the Shanghai Stock Exchange Composite Index plunging 28.2% from mid-June up to July 9. The three-week plummet has wiped out $2.36 trillion in market value, according to Bloomberg.

However, despite the current sell-off, China is still one of the best performing markets this year. The rally earlier this year came after the CSRC announced plans in March that mainland mutual funds would be allowed to participate in the recently launched Hong Kong-Shanghai Stock Connect programme.

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