We think the Chinese economy is bottoming in the near term, at least over the next few quarters. Bottoming can be said to be taking place when there is marginal improvement, or when the economy is simply stabilising around the current level with no further deterioration, and bottoming can also take place within a narrow range.
Amundi Hong Kong Chief Economist
Since mid-June, the value of domestic Chinese equity has plunged by more than 30%. However, before this, the market had surged by 160% since its low in January 2014. Unlike the preceding bull market in 2005-2007, the latest boom played out against a backdrop of a significant slowdown in GDP growth.