With the dismal 10% drop in China Zhongdi Dairy's IPO as it started trading, it appears Chinese investors are losing faith in the highest-flying stocks. Following Monday's miracle afternoon rescue, ChiNext (tech-heavy) and Shenzhen (tech and growth-heavy) indices are plunging. Shanghai, which initially rose thanks to strength in housing stocks, has given up all its gains as last night's Schrodinger PMIs were neither good nor bad enough to prompt immediate massive monetary liquidity tsunami.
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In Shenzhen only 230 of the 1686 stocks are up, with 420 stocks down over 5% and 40 limit-down at -10%.
Telecoms, Tech, and Oil & Gas sectors are all weaker as Financials hold on to gains.
Only the smallest-cap stocks are broadly higher with large and mega caps considerably lower.
Charts: Bloomberg
