Chinese stocks rebound strongly today but we've seen this story before

<p>Both the CSI 300 and Shanghai Composite indices are up by over 3% on the day now as Chinese authorities are stepping in to intervene in the market again. The yuan currency itself also seeing a notable rebound with USD/CNH in particular falling back to near 7.20 after having traded close to 7.22 earlier in the day.</p><p>It's one of those standout days but again, it begs the question whether or not this is another dead cat bounce?</p><p>We've seen these sort of rebounds take place a few times already in the last month or so. And ultimately, it still leads lower as the confidence and fundamental support just isn't there. I would like to emphasise the latter especially. China needs to do a whole lot more to really convince of a turnaround in sentiment.</p><p>As Adam highlighted earlier <a href="https://www.forexlive.com/news/china-on-the-brink-a-look-at-the-long-term-chinese-stock-market-charts-20240206/" target="_blank" rel="follow">here</a>, the long-term technical picture looks rather bleak at the moment. And you don't want to be the guy that tries to catch a falling knife in any scenario.</p>

This article was written by Justin Low at www.forexlive.com.