FXStreet (Mumbai) – The rout in the Chinese stocks continued on Friday, with the Shanghai Composite Index heading for its biggest loss in eight years, on increasing signs of overheating bull market.
June 12 high a likely top – Morgan Stanley
The investment bank Morgan Stanley advised clients to refrain from buying shares on dips in a report on Friday, stating that the Shanghai Composite’s June 12 high of 5178.19 likely marked the top of the bull market.
The index currently trades 7.91% lower at 4169.77. The rout witnessed today was largely driven by the sell-off in technology shares and smaller companies, which had led the China’s world-beating rally through mid-June.
Experts have also blamed the correction to margin selling.
(Market News Provided by FXstreet)