The volatile moves underscore how investor confidence has been shattered as risks keep stacking up. In addition to a weak economic outlook, concerns over forced stock sales from highly-leveraged stakeholders, margin calls, and technical selloff triggers for snowball derivatives are all combining to unnerve traders.
A sense of panic gripped Chinese stock investors on Friday afternoon as key benchmarks tumbled sharply, and then quickly pared their losses, leaving traders wondering what’s next in store for the ailing market.
The CSI 300 Index plunged more than 3% at one point before closing down 1.2%. The Shanghai Composite gauge similarly pared its loss, capping its worst week since 2018.
