Is China's Stock Market Beginning To Stabilize?

After declining 72.8% from its highs, China's Shanghai Composite is finally showing signs of stabilization. As shown in the charts below, the index recently broke above the downtrend it has been in since April, and it hasn't gotten close to testing its lows. The index currently looks to be in a consolidation phase, so a big bounce in the near term is unlikely, but it does seem to be regaining its footing and building a base.

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Comments

[Urbane Gori...:]

Yup! Just caught the same thing on FXI... Looks like a bottoming at around $22.00.

jegan

2008 Dec 02 11:24 PM

[chinesezodi...:]

fair enough, a bouncing ball eventually stabilizes as well.... I just read that one analyst saw almost FLAT growth for China in '09; I don't know if I'm ready to jump back on just yet.

2008 Dec 03 03:44 AM