CHART: Hong Kong stocks are in a bear market

After falling by a further 1.5% this morning, Hong Kong’s Hang Seng index has now fallen over 20% from its April 27 high of 28,558.

It has now moved from being in a technical correction to being in a bear market.

Year-to-date the index is down 3.42%.

While the fortunes of Hong Kong are largely determined by developments in China, in comparison, the benchmark Shanghai Composite index has risen by 15% over the same time period.

It would be interesting to see where the Composite would be trading had the government not stepped in to underpin the once free falling market.

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