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Dead Market Walking - Chinese Stock Trading Volume Collapses To 3 Year Lows

With "selling" outlawed and anything but cheer-leading strocks higher subject to detainment, it appears the Chinese government has managed to undo 3 years of liberalization and financial deregulation in the space of a week. Futures trading volume on the CSI-300 (China's S&P 500) which for a while in May became the most actively traded financial contract in the world (surpassing S&P 500 e-minis), has utterly collapsed in the last week - since the arrests and detainment of various brokerage executives - to its lowest levels in three years. As one local trader noted - Chinese index futures trading is dead.

 

In May, CSI-200 Futures were the most actiuvely traded financial instrument in the world - topping S&P e-minis...

 

 

But that has all collapsed now to its lowest levels inm 3 years...

 

in the space of just over a week...

 

Index futures trading is DEAD already amid all those restrictions imposed!!
HELP...
CSI300 futures vol 38,054 ? It was 500k to 1 mln !!

— Simon Ting (@simonting)

 

CSI300 futures volume was #1 and beat eMini-S&P in May~July. Today only 12,700 do far? My peers in mainland all have a long, long face.????

— Simon Ting (@simonting)

Re-capitalize your zombified over-leveraged SOEs now!!

Charts: Bloomberg