Trading volume of Chinese stock market at historically low level

As seen from the chart below, the trading volume of Shanghai and Shenzhen stock exchanges since August, 2011, the trading volume has fluctuated in a relatively low level, compared to the previous few years’ performance. We see this being a result of retail investors’ lost confidence in a stock market that hasn’t performed well recently, or at least not to the same levels as a few years ago. 

This may be very temporary however as a number of the recent Chinese economic announcements and regulatory changes will likely have impact on the country as a whole and more specifically in the financial sector.

Watch this space.