Shanghai opens week with more volatility

More rollercoaster trading in Shanghai to start the week, which plunged on opening and then clawed back most of the losses.

The Chinese stockmarket has dropped nearly 40% since June in what most traders are saying is a correction after breakneck growth in the previous nine months. In August the market shed 12% of its value.

However the government is blaming speculators and is cracking down on them. Papers on Monday were filled with confessions from businessmen and at least one journalist admitting to illegal practices.

Real worries about China’s economy remain, however, and the latest figures due this week on factory production and the service sector will be keenly watched.