China's benchmark stock index has corrected

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Chinese stocks, as they have been for most of this week, are back under pressure today.

The benchmark Shanghai Composite is currently down more than 3%, taking its total decline since hitting a multi-year peak of 5178 on June 12 to more than 10%. While still up 127% over the past 12 months, the index has now officially entered a technical correction. All sectors are deep in the red with all bar financials, energy and utilities off by more than 3%.

At present the index is on track to record its largest weekly percentage decline since October 2008 and, as a consequence of its recent rally, the largest points decline on record.

Amidst increased talk that stocks were in a bubble, short-sales among US investors doubled to a record high earlier this week.

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