FXStreet (Edinburgh) – Analysts at Deutsche Bank see the possibility that the Chinese stock market could drop further.
Key Quotes
“China has stabilised, but the wealth effect for retail investors is already significant, according to our economist Zhiwei Zhang.
“If the sell off is a classic three wave affair, we are currently undergoing the second wave consolidation, before we get a third wave lower which often makes fresh lows”.
“Despite all the prohibitions on trading, the broker margin debt balance has only declined by 37%, suggesting that there is still considerable long-only leveraged sellers that would like to exit the market, though the margin to market cap ratio has dropped back to January levels”.
(Market News Provided by FXstreet)