Chinese stocks are tumbling again

The selling is on again in China.

The Shanghai Composite plunged 5% in early trade, following the pattern of daily losses over the past week. It has recovered slightly in what is becoming familiar volatility on the Chinese markets.

The continuing falls follow an interest rate cut announced by China’s central bank on Sunday, and news that Beijing will allow its massive pension fund to buy stocks to support the market, which is now in official bear market territory after falling 25% in 11 days.

ChiNext, the tech-heavy index, is down 38% in 16 days.

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