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This week has brought more trouble for the Chinese stock market, marking the worst weekly performance for the Shanghai Composite Index in the past five years. Investor confidence was already fragile at the start of the week due to concerns over draft US legislation impacting WuXi AppTec.
“Now we’re all sitting ducks”
China’s stock market rout continued on Friday, pushing the Shanghai Composite index to a 5-year low.
Notably, investors struggled to identify any specific news triggers for the latest downturn but pointed to concerns about highly leveraged investors being forced to sell their holdings as one factor behind the abrupt market sell-off.
Despite a subsequent recovery in stock prices, which coincided with positive net investment inflows…
