Both the CSI 300 and Shanghai Composite indices are up by over 3% on the day now as Chinese authorities are stepping in to intervene in the market again. The yuan currency itself also seeing a notable rebound with USD/CNH in particular falling back to near 7.20 after having traded close to 7.22 earlier in the day.
It's one of those standout days but again, it begs the question whether or not this is another dead cat bounce?
We've seen these sort of rebounds take place a few times already in the last month or so. And ultimately, it still leads lower as the confidence and fundamental support just isn't there. I would like to emphasise the latter especially. China needs to do a whole lot more to really convince of a turnaround in sentiment.
As Adam highlighted earlier here, the long-term technical picture looks rather bleak at the moment. And you don't want to be the guy that tries to catch a falling knife in any scenario.
