Today, the Shanghai Stock Exchange Composite Index ('SSECI') & the Shenzhen A index broke below their April 22nd low. The SSECI traded at 2869 as at 10.30 pm ET while the Shenzhen A closed at 896 for today. The April 22nd low for SSECI & Shenzhen A index were 3000 & 912, respectively. The indices begun to slide this week after China's central bank ordered lenders on June 7th to set aside more money as reserve, the fifth such move this year. The reserve-requirement ratio would be raised by 0.5 percentage points on June 15, and another 0.5 percentage points on June 25.
I have attached the daily & weekly charts for SSECI for your easy reference. You can see that the next support for that index is at 2600.
Chart 1: SSECI's daily chart up to April 22nd (source: Stockcharts.com)
Chart 2: SSECI's weekly chart up to April 22nd (source: Stockcharts.com)For the chart of Shenzen A index, go
here. You may like to check out my April post on the outlook for SSECI (
here).
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