Chinese markets continue to unravel with about 940 firms on the Shanghai and Shenzhen suspending trading. As Chinese stock exchanges have now fallen more than 25% since June, Jasper Lawler, market analyst at CMC Markets, details what have been the primary drivers of the rapid decline. With almost a third of firms on China’s mainland exchanges suspending trading, Lawler reveals whether more firms are likely to follow suit. He also weighs in on whether Chinese authorities can do more to contain the damage in the markets, after taking steps like delaying initial public offerings and letting pension funds invest directly in equities. While Lawler says he expects a dead cat bounce within the next month or so, he stresses that he doesn’t see Chinese equities making new highs this year — or most likely within the next few years either.
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