The relentless volatility in Chinese stocks has continued this afternoon.
The Shanghai Composite, having fallen 7.4% on Friday, has lost an additional 3.3% today.
While the closing figure suggests it was another bad day for stocks, it only tells half the story. It has been wild.
At 422 points, the the intraday points range was the largest on record. In percentage terms from the previous close, the range was over 10%, a level of volatility last seen on February 20, 1997.
Over the past 10 sessions the index has now lost 21.73%, marking an official bear market.
Amidst the escalating debt crisis in Greece, many investors were pinning their hopes on a recovery in Chinese stocks today following additional monetary policy easing from China’s PBOC over the weekend.
For the moment the decision by the PBOC to cut interest rates by 0.25%, and the reserve ratio requirement by 0.5% for some lenders last weekend, has done little to stop the selling pressure.