After another big up day today, China's Shanghai Composite is now up a whopping 18% since making a multi-year low in early December.
Remarkably, the Shanghai Composite is currently stuck in the longest bear market it has ever seen (going back to 1990). Â A bear market is a 20%+ decline that was preceded by a 20%+ rally, and vice-versa for a bull market. The current bear market that the Shanghai is in has lasted 756 calendar days and seen the index decline 38%. Â Below is a table of past bear markets for the Shanghai. Â The longest bear market China had seen prior to this one lasted 461 days from April 2004 to July 2005. Should the Shanghai gain another couple percentage points, a new bull market will be at hand, and it will certainly be a welcome relief for Chinese investors.
Copyright Š Bespoke Investment Group
