Apparently according to financial journalists the Shanghai Composite is now officially in a bear market because it has fallen the mandatory 20%. I do wish they would pay attention to what is actually happening. The first chart below shows my usual value of $1 invested i the index.
As you can see the glory days for the Chinese equity market are long gone with the peak being in 2015. When I did a quick and dirty drawdown curve the level of sustained carnage becomes more apparent.
Large drawdowns seem to be the default setting for the Chinese market which is to be expected from a market that is poorly regulated and quite immature. It is just a pity that financial commentators seem to miss the bigger picture entirely.
