China Investors Shun World's Wildest Stocks as Trading Dries Up
- Drop in turnover is equal to total trading in the U.S.
- Price swings are twice as extreme as other major markets
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Plunging turnover and the world’s wildest price swings mean that China’s stock market just keeps getting uglier for investors.
The value of shares traded on mainland bourses has fallen to $90 billion a day from about $380 billion on May 28, with the difference being equivalent to the average daily trading in the U.S. The Shanghai Composite Index’s volatility over the past 30 days was twice as extreme as the average for the biggest global markets. That’s bad news for government efforts to stabilize equities, according to IG Asia Pte.