You may have noticed that volatility in Chinese stocks has soared in recent weeks.
Here’s a chart that demonstrates the point.
It shows the average daily trading range of the Shanghai Composite as a percentage of the previous day’s closing level.
In June this year the average daily trading range has been 3.90%. This compares to 2.34% between January to May this year and 1.4% for calendar year 2014.
From June 16 to 29, the daily percentage trading range has jumped to 5.1%, so far.