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CHINA: Equity Volumes and Bond Market Speculation

CHINA
  • Transactional volumes on the Shanghai and Shenzhen bourses have fallen to their lowest level in more than four years.
  • Turnover fell below CNY500bn on Monday this week marking one of the thinnest days in volume since May 2020.
  • Following several years of losses in equity markets and an unprecedented real estate market decline, investors have had little choice but to pile into government bonds.
  • As regulators seek to reduce speculation in the bond market via intervention, an improved growth outlook and stability in the real estate sector would be an important contributor to reducing demand for bonds.

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