Tags: China | stocks | Morgan Stanley | markets

Chinese Stocks Tumble as Morgan Stanley Says Don't Buy the Dip

Friday, 26 Jun 2015 09:56 AM

Chinese stocks tumbled, with the Shanghai Composite Index falling more than 4 percent amid mounting concern that the nation’s longest-ever bull market has peaked.

Technology shares, which led China’s world-beating rally through mid-June, paced declines on Friday as East Money Information Co. sank by the 10 percent daily limit. More than 21 stocks fell for each one that rose in the Shanghai Composite, which sank 4.1 percent to 4,344.06 at the midday break.

China’s stock market has plunged from first to worst on the global performance rankings as leveraged speculators unwind their positions and a growing number of analysts warn that valuations have climbed too far. Morgan Stanley advised clients to refrain from buying mainland shares in a report on Friday, saying the Shanghai Composite’s high on June 12 likely marked the top of the bull market.

“This is probably not a dip to buy,” wrote Jonathan Garner, the head of Asia and emerging-market strategy at Morgan Stanley in Hong Kong. “In fact, we think the balance of probabilities is that the top for the cycle on Shanghai, Shenzhen and the ChiNext has now taken place.”

The Shanghai gauge has surged 124 percent over the past year as margin debt climbed to all-time highs and investors speculated monetary stimulus will revive the weakest economic expansion since 1990. The bull market, which turned 935 days old Friday, is the longest since Chinese bourses opened for trading in 1990 and more than five times the average lifespan of previous rallies.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Markets
Chinese stocks tumbled, with the Shanghai Composite Index falling more than 4 percent amid mounting concern that the nation's longest-ever bull market has peaked.
China, stocks, Morgan Stanley, markets
248
2015-56-26
Friday, 26 Jun 2015 09:56 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved