China's markets are functioning on the force of Bejing's will

More than any market, China is dominated by domestic retail investors. Speaking on Tip TV, Chris Justham, Relationship Manager for Seven Investment Management says that we should watch out for the effects of highly leveraged "circular investors" borrowing against their existing portfolio and reinvesting that cash back through their brokerage accounts. Authorities in Beijing have intervened heavily this week to stabilise prices, but we are likely to see more volatility, not helped by this highly leveraged behaviour.