15% Swing in ChiNext

Is this the bottom? ChiNext rallies 15% from the bottom on Tuesday to close up more than 6%. There was no news that warranted a reversal of this magnitude. Or rather, stocks plunged despite all the announced and rumored policies and then rebounded on no new information. As happened last week, investor mood shifted. Whether it holds remains to be seen, but if the 2000 Nasdaq is a model here, there's a lengthy bounce process to follow.

China’s stocks rebound as traders weigh policy support
Speculation is growing that policy makers are preparing measures to prop up the world’s second-largest stock market. The Economic Observer reported the government is considering steps to stabilize equities including a reduction in the stamp tax, while the finance ministry said it will allow the pension fund to invest in shares.

The government is considering a delay in the IPO of China Nuclear Engineering Corp., according to people with knowledge of the matter. The delay is being considered because of current market conditions, said the people, who asked not to be identified because the information is private.

Margin debt on the Shanghai Stock Exchange fell for a sixth day on Monday to 1.36 trillion yuan ($219 billion), the longest stretch of declines since June 2014. A five-fold surge in leveraged wagers had helped propel the Shanghai index to a more than 150% gain in the 12 months through 12 June.

The Economic Observer cited improving sentiment for the rebound. Financial stocks were up sharply, or as Google translate puts it, achieved the Jedi.
EO: 大盘逆空反弹重返4200点 A股人气回升
The disk, the plate almost fully meteoric rise. Where financial stocks led the gains, even in the early disk reproducing panic, it is only financial stocks meteoric rise, especially brokerage stocks, almost soaring, no one fell. Guotai Junan first daily limit, followed by Southwest Securities, Changjiang Securities, Western Securities and other brokerages are sealed daily limit. Banking sector is also doing well, the plate rose 6.67 percent, which Bank of Communications, Bank of Ningbo, etc rose sharply. In addition, pharmaceutical stocks and media and entertainment sector also rose sharply to achieve the Jedi.

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