Chinese Housewives Displeased After Biggest Stock Market Drop In 2 Years

For the 4th day in a row, China opened with a dip last night, but this time it was different. A half-hearted BTFD-effort was met with major selling pressure. Between real-estate developer Kaisa’s failed bailout and yet another entity defaulting (Zhuhai Zhongfu stock plummetted) it appears the 8% rip of the last few days in the Shenzhen Composite was just too much for Chinese housewives not to take some profits. By the end of the day, Shanghai Composite, CSI-300, and CHINEXT were all red on the week (the latter down hard) and the meteoric Shenzhen Composite up just 0.6% on the week (after its biggest daily drop in 2 years). It was different this time…

Something does not look right, though panic may not be setting in yet…

Worst single-day drop in 2 years and almost worst since 2010…

Within the Shenzhen Composite 271 stocks (out of 1730) plunged by 9.99% or more (but Saimo Electric, Sichuan Maker Biotech, and Global Infotech all rose more than 40% on the day)…

And 179 (of 1083 stocks) in The Shanghai Composite dropped 9.99% or more overnight…

In other words; this is the worst sell-off since the new smart investing public joined the casino…

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Chinese Housewives Displeased After Biggest Stock Market Drop In 2 Years

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