Kinahan Expects Continuing 'Wild Volatility' In Chinese Stocks

The Chinese stock market is undergoing a slight correction after big gains over the first half of the year. The Shanghai Stock Exchange Composite Index is down 25 percent since June 12, although still holding a 20 percent increase since the beginning of the year. TD Ameritrade Chief Strategist JJ Kinahan offered Benzinga some insights. He thinks it will be difficult for the Chinese market to bounce back to the highs that it saw at the beginning of the year, noting that production has slowed down in recent months. He also questioned the reliability of figures released by the Chinese government. Kinahan expects to continue to see "wild volatility" in the market for the rest of the year. He explained that many Chinese participants are first-time investors whose families have only recently acquired wealth. Overall, Kinahan expressed a bearish, uncertain outlook on the Shanghai exchange.