Chart Book | Chart of the day: Volatility returns to China market

Volatility has returned to the Chinese stock market this year. The 60-day price swing on the Shanghai Composite Index rose to its highest level in almost two years this week as stocks were roiled by escalating trade tensions between China and the United States. The sell-off in big-caps amid concerns over elevated valuations further added to the volatility. So far this year, the Shanghai benchmark index has seen the daily movement surpassing 1 per cent on a closing basis on 15 trading days, compared with only three a year earlier. Suspected intervention from state-backed funds and tightened regulatory scrutiny of wrongdoings helped drive volatility in the stock market to record lows last year. The index has lost 3 per cent since the start of this year.