It appears The National Team is taking a well-earned break as Chinese stocks extend their losses from late last week in the biggest 3-day drop since June 2016.
Breaking below a key technical support level...
Chinese shares were already on a shaky footing after last week when investor confidence was sapped by fresh government steps to reduce financial risks, and a rout in the bond market; but three straight days down with no aggressive 'management' buying is unusual...
With the Shanghai Composite back to its lowest since August (when China's National Team - aka state-backed investor China Securities Finance Corp - announced it had boosted its stake in the entire brokerage sector)...
At the same time, short-term liquidity markets are showing serious signs of strain as 1-month HKD HIBOR spikes to its highest since Dec 2008...
And South Korean stocks plunged most in 3 months...as tech shares slumped following an analyst’s report suggesting the memory chip “super cycle” would soon fade, led lower by Samsung Electronics.
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