Chart of the day: Return to stability
The CSI 300 Index is increasingly used in the West, perhaps as a shorthand way of looking at what is happening to the stock markets in China because it is a weighted index of the top 300 A shares traded in Shanghai and Shenzhen. Including brands known well internationally, like Ping An Insurance, Industrial and Commercial Bank of China and Baoshan Iron and Steel, it also has plenty of China-centric giants such as China Minsheng Banking Corp, China Vanke and China Yangtze Power. This year’s sharp sell-off has brought it back down to last summer’s lows, a Fibonacci 61 per cent retracement from 2008’s low to 2015’s high. The area between 2,900 and 3,050 points would seem a natural point at which to stabilise, regroup and see volatility drop.
Nicole Elliott is a technical analyst