China rally sputters…from a recent top of 5,180 to a 4,035 in a month!
China is the best defined “momentum market” meaning that the crowd just go in one direction following each other…so massive gains and massive losses…are normal.
China still wants to preserve its target to have the Yuan included in the IMF monetary basket in October and have a major representation in the MSCI Emerging Markets Index.
I think the Chinese authority were pretty happy until last week as they needed to pop the bubble before bursting….but Greece got in their way.
Saturday they decreased the lending ratio…and today the market reacted well…..only to be overwhelmed by the international situation.
Now they will start scrambling their Plunge Protection team for real.
investorpolitico 