Update: The entire spike has been fully retraced by the close of China
[6]
In the new normal where broad-based equity indices that represent the corporate health of entire nations in one bit-sized propaganda-plagued number, the fact that China's Shanghai Composite spiked instantaneously by 6.2% this evening will come as no surprise...Some large stocks (PetroChina and AgBank jumped as much as 10% before plunging back instantly to reality). While the Exchange is "investigating" the spike, their PR is currently saying that it is "operating normally" - 'new normally' we presume. Between today's gold and silver spikes, FX market volatility, and now Chinese stocks gapping wildly, it would appear something is afoot in the leveraged world of carry-trades (and instant illiquidity).
[7]
some context, this retraced instantaneously the losses from the pre-FOMC dump on 6/12 (when China's money markets were starting to collapse)...
[8]
Charts: Bloomberg