Dead Market Walking - Chinese Stock Trading Volume Collapses To 3 Year Lows

With "selling" outlawed and anything but cheer-leading strocks higher subject to detainment, it appears the Chinese government has managed to undo 3 years of liberalization and financial deregulation in the space of a week. Futures trading volume on the CSI-300 (China's S&P 500) which for a while in May became the most actively traded financial contract in the world (surpassing S&P 500 e-minis), has utterly collapsed in the last week - since the arrests and detainment of various brokerage executives - to its lowest levels in three years. As one local trader noted - Chinese index futures trading is dead.

 

In May, CSI-200 Futures were the most actiuvely traded financial instrument in the world - topping S&P e-minis...

 

 

But that has all collapsed now to its lowest levels inm 3 years...

 

in the space of just over a week...

 

 

Re-capitalize your zombified over-leveraged SOEs now!!

Charts: Bloomberg