China's benchmark stock index plunged 4.4% yesterday to its lowest close since mid-August as government policies have sapped the market's momentum.
The Shanghai Composite Index dropped 230.07 points in light trading to 4984.16, pulling the market to its first close below 5000 since Aug. 22. The market weakness also helped to send Hong Kong's key Hang Seng Index down 2.3% to 26004.92, its fifth loss in six sessions.
China's market is now 18% below last month's record close. Yet analysts are generally reluctant to say the nation's stock-market investors have turned fundamentally bearish after two years of explosive bullishness.
"Maybe it is not a sign of bear market but surely a correction with great size and fast pace,"...MORE
Now there's a quote! Meanwhile the Proshares China Ultrashort (double inverse) ETF which began trading Nov. 8, first print 75.25 closed Wednesday at 91.25. I know 21% sounds like it's run away but this is an important tool. We posted on it the day it started trading and again on day two when BIG posted on it.