Anxiety dominates China's $9.1 trillion stock market, now more than at any time last year, according to a Bloomberg gauge.
The so-called fear and greed indicator, a measure of buying strength versus selling strength, of the Shanghai Composite Index fell on Monday to its lowest level since October 2022. The ongoing decline has led the stock indicator on the verge of exceeding a critical level. 18-year trend line.
While the indicator has a history of foreshadowing rebounds, a strong bearish signal does not always lead to an equally strong recovery. For example, the indicator rose sharply during the reopening in November, although the selling pressure that preceded the gains was not sharp.
Likewise, a sell-off in August did not give way to a tepid recovery in stock values.
