Chinese market correction 'healthy' - UK managers

UK analysts and fund managers have described the correction in Chinese equities markets as healthy. ...

UK analysts and fund managers have described the correction in Chinese equities markets as healthy. Gigi Chan, Far East and Asian manager at Threadneedle, said she regards yesterday’s 9% fall in the Shanghai Composite Index as a healthy correction after a strong performance run. “The market has soared by around 50% since November and investors may have taken rumours of the authorities’ liquidity reduction measures as an excuse to take profits,” she said. It could also be argued that the sell-off was a delayed reaction to the raising of the banks’ reserve ratio requirement. Paul Niven,...