Daily Reflection on China

Daily Reflection on China

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Daily Reflection on China
Daily Reflection on China
What U.S. Investors Can Learn from the 2015 Crash of China A-shares
Stock Market

What U.S. Investors Can Learn from the 2015 Crash of China A-shares

Some back-of-the-envelop calculations on S&P 500

Qi Wang CFA's avatar
Qi Wang CFA
May 14, 2022
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Daily Reflection on China
Daily Reflection on China
What U.S. Investors Can Learn from the 2015 Crash of China A-shares
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Key Takeaways

  • The current U.S. market correction and the 2015 crash of China A-shares are both examples of a retail-driven bubble burst, in my view.

  • The A-share market correction lasted 167 trading days in 2015-2016, during which the CSI 300 Index had a drawdown of 47% and an annualized volatlity of 46%.

  • Using this as a reference, the current U.S. market c…

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