MCHI - China Struggles
2024-06-26 13:40:00 ET
Summary
- China's stock market has been mired in a long and steady downtrend for several years.
- In February, there was a brief respite from the selling as the Shanghai Composite bounced just over 20% through May, the rally was capped at the knees with a 7.6% decline over the next five weeks.
- When looking at price charts, trends of lower highs suggest a heavy tape, and by this logic, Chinese stocks have never been heavier.
Nowadays, it doesn't surprise anyone to see Chinese stocks underperforming, as the country's stock market has been mired in a long and steady downtrend for several years. Back in February, there was a brief respite from the selling as the Shanghai Composite bounced just over 20% through May. While Chinese stocks met the technical threshold for a bull market based on an intraday basis (based on closing prices, the Shanghai Composite was up just 17.4%), the rally was capped at the knees with a 7.6% decline over the next five weeks....
China Struggles