One Year After Bubble Burst, China’s Stock Market Has Gone Quiet
- Volatility on the Shanghai Composite is lowest since 2014
- State support limits losses as valuation concerns cap gains
China's Stock Market Goes Quiet
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It’s been almost 12 months since China’s equity market embarked on a precipitous decline that would erase $5 trillion of value, and the nation’s stocks have rarely been this subdued.
For the past two weeks, the Shanghai Composite Index hasn’t strayed more than 51 points from the 2,800 level. Volatility on the gauge is the lowest since December 2014, while turnover has crumbled to levels more than 80 percent below last year’s peak. Margin debt, which fueled 2015’s bull market, has dropped by more than 1.4 trillion yuan ($213 billion) on China’s equity exchanges as investor interest dwindled.