China markets rout resumes with 8.5% Shanghai sell-off -- as expected!

As I did predict  in my previous post, Chinese shares fall  more than 8% despite an unprecedented state rescue efforts to prop up valuations.

Some annalists have argued that an abrupt halt in state support was the main reason for the latest fall, expressing concerns about the lack of resolve by Beijing’s authorities to stave off a deeper crash, I   beg to differ.

As I've argued in my previous post the crash was unavoidable, because no justifications could be offered from the real side of economy for the surge of stock prices earlier this year.

 These record one-day drops since 2007 in major indexes, after three weeks of relative calm, once again demonstrate that policy interventions in equity markets would be ineffective if they're not firmly grounded on the economic fundamentals.