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2 Sep 2015
SHCOMP deep in the red ahead of China's victory parade
FXStreet (Bali) - SHCOMP (Shanghai Composite) is now down 2.8%, while CSI300 futures slid by 0.8%, just one day ahead of China's victory day military parade.
As a reminder, over the weekend, we learnt, via the Financial Times, that China's government had decided to no longer come to the rescue of equities and no intervene through large-scale share purchases, a realization that they should let market forces establish the fair value on Shanghai's index.
In a recent interview with Bloomberg, Michael Every, Strategist at Rabobank, believed that the SHCOMP equilibrium point might be somewhere around 2,500.
As a reminder, over the weekend, we learnt, via the Financial Times, that China's government had decided to no longer come to the rescue of equities and no intervene through large-scale share purchases, a realization that they should let market forces establish the fair value on Shanghai's index.
In a recent interview with Bloomberg, Michael Every, Strategist at Rabobank, believed that the SHCOMP equilibrium point might be somewhere around 2,500.