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Goldman: China May Find Support After Another 10% Fall

After Shanghai stock market’s spectacular 8.5% fall yesterday, everyone wants to know: How low will China’s stock markets go? When can we bottom fish?

China has seen its most significant stock correction since the Global Financial Crisis in 2008, with its Hong Kong-listed stocks losing on average 32% from their second-quarter peaks.

Goldman Sachs looked at China market selloffs in the last twenty years and concluded that in major “corrections”, including the SARS scare in 2003, China’s...