(Bloomberg) -- Chinese stocks haven’t been this volatile in years as traders struggle to decide whether the $6 trillion market has bottomed out.
Buffeted by crosscurrents ranging from the trade war and rising defaults to monetary stimulus and cheapening valuations, the Shanghai Composite Index has recorded seven straight swings of 1 percent or more as of Thursday-- the longest such stretch since Chinese markets crashed in 2015. Intraday moves in the index have grown the most extreme in 30 months, while the country’s market capitalization fluctuated by at least $97 billion for seven consecutive trading sessions through Thursday.
The rollercoaster ride continued on Thursday as the Shanghai Composite jumped 1.8 percent, the biggest gain worldwide, on news that regulators plan to reduce barriers for foreign stock investors. The index has been bouncing around its lowest level since early 2016 in recent weeks amid what market watchers describe as a growing divide between bulls and bears. It added 0.3 percent as of 9:53 a.m. local time on Friday.
“There is no consensus,” said Steven Leung, an executive director at Uob Kay Hian (Hong Kong) Ltd. “In these circumstances, lots of investors in China have turned into short-term investors.”
Here’s what other analysts and money managers are saying about the rising volatility in Chinese stocks.
Wang Chen, Shanghai-based partner at XuFunds Investment Management Co.
Sun Jianbo, president of China Vision Capital Management in Beijing
Yang Hai, a Xi’an-based analyst at Kaiyuan Securities Co.
Kang Chongli, Beijing-based strategist at Lianxun Securities Co.
(Updates market cap change in 2nd graph, adds Friday trading in 3rd graph.)
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