UPDATE 4.50pm AEST: The Shanghai composite is now falling after a brief post-lunch rally. It’s down 1.3% for today after earlier being up around 1.5%, a rally that followed falls in early trade. Here’s the updated chart:
After a volatile start China’s Shanghai Composite index has resumed its usual modus operandi this morning, soaring nearly 1% at it approaches the lunchtime break.
With today’s gain the index is now up more than 88% since the People’s Bank of China began to roll out stimulus measures late last year.
While this could easily change – trade is extremely volatile – it seems the PBoC’s decision to ease policy over the weekend is trumping concerns over changes announced by the China Securities Regulatory Commission involving rules governing margin trading and short selling.