“Rainbows always appear after rains,” according to the People’s Daily, referring to the fruits of Beijing’s measures to support the nation’s imploding equity market.
Here’s what those rainbows look like now:
Early chart of Shanghai Composite this morning. pic.twitter.com/5OQ8mVtcrm
— Josh Noble (@JoshTANoble) July 6, 2015
After soaring 7.8% within the first minute, the Shanghai Index sank like the proverbial rock and retraced its gains all the way down to +2.3%.
All this comes after policies unveiled over the weekend, such as the PBoC’s emergency liquidity injection, failed to stem the tide of sellers currently in the market.
Word on the street right now is that Central Huijin – one of the country’s ginormous sovereign funds – will be stepping in as well to prop up large caps such as PetroChina and CIBC up.
Well, strap yourself in folks, this ride doesn’t seem to be over yet.
Photo credit: istock