Chinese shares’ manic rally had made them the world’s top performers over the past year, but they fell nearly 15% between June 15th and 19th, their sharpest sell-off since the depths of the global financial crisis. They have since bounced back a little, but it may be only a matter of time before the correction resumes. High-growth companies are still priced at more than 100 times last year’s earnings, redolent of the giddy heights of America’s dotcom bubble in the late 1990s. The only certainty is that more volatility is in store. Shares swung more than 7% within a few hours on June 22nd. Weaker trading volumes suggest that investors are starting to tire of the wild ride.
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