Chinese ‘Dead Cat Bounce’ Fades, “Hostile Sellers” Appear As Goldman Warns “Not Yet Fully Purged”

Chinese ‘Dead Cat Bounce’ Fades, “Hostile Sellers” Appear As Goldman Warns “Not Yet Fully Purged” (ZeroHedge, July 9, 2015):

*CHINA’S SHANGHAI COMPOSITE INDEX FALLS 0.6% TO 3,687.36 AT OPEN

Amid the highest level Typhoon warnings, China’s stock market continues to storm as only 49% of Chinese stocks are halted (down from 54%) as local analysts fear yesterday’s bounce (just like last week’s) was nothing but a dead cat bounce: “bounces like today prolong the timeframe to get that final bottom in place.” For the 14th day in a row margin balances declined with the pace accelerating (down 10.9% yesterday alone) for a total over 36% decline so far. Seemingly on pain of death, someone is selling Chinese stocks as CSI-300 futures opened a mere 0.2% higher then sold off – no follow through for now. Goldman warned to expect another 30% decline margin balance and concludes, China “hasn’t yet fully purged.”

1 thought on “Chinese ‘Dead Cat Bounce’ Fades, “Hostile Sellers” Appear As Goldman Warns “Not Yet Fully Purged”

Leave a Comment