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What’s going on with China’s stock market?

Tuesday was one of the most volatile trading days for the Shanghai Composite since the financial crisis, with the index falling nearly 5% before making a big 312-point comeback to end the day up 2.2%.

China’s stocks look to be falling back down to reality.

After a legendary rally that saw the Shanghai Composite index climb a lot more than 40% this year and also the tech-heavy Shenzhen Composite rise a world-leading 90%, a correction – or maybe worse – looks to be in the works.

Last week both indices lost more than 10%, falling solidly into correction territory. But investors hoping that some of the volatility would ease this week will likely have to do more waiting.

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