Chinese Stocks Pump'n'Dump After RRR Cut, Retrace Friday's Crash

After crashing 6-7% on Friday (depending on which Chinese stock index you prefer) - all after the cash markets closed in China - thanks to today's major RRR cut, China stock futures are up 7% from Friday's US session close. However, while futures have recovered all those losses, the Shanghai Composite cash index is trading modestly lower from its Friday cash close levels (we suspect a little disappointingly to some) after recovering the entire loss from post-China-close Friday.

Futures ripped back...

 

Just looking at the cash Shanghai Composite index - you'd never know it crashed... but it's fading back lower again now...

 

We suspect this is not the exuberance many had expected...

 

Charts: Bloomberg