Chart Book | Chart of the day: China stocks on slow recovery

China’s stocks are on a slow path to recovery from the mayhem that wiped off about US$5 trillion in market value in 2015, thanks to occasional state buying. While the Shanghai Composite Index has risen 27 per cent since the low in January last year, it has recouped less than a third of its loss from the 2015 peak. Should the momentum continue, the next target for the gauge would be at the 38.2 per cent Fibonacci retracement level of 3,614.74 points. The index closed 0.5 per cent lower at 3,382.907 points on Friday.