The Shanghai market has rebounded nicely since its slump early in the year, but if you look beneath the hood it’s not all roses.
A new report from Rodman & Renshaw points out a major divergence between big blue chips and small caps, the latter of which are still sharply lower for the year.
The culprit? Increased scrutiny and scepticism.
Remember that shady Chinese travel agency listed on the NYSE? Who knows how many of those companies lurk among the masses of publicly traded Chinese stocks.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.