Mainland stocks' plunge ends with shares still languishing

China’s stock market appears to have hit a floor as the Shanghai Composite Index hovers around 3100, marking the end of a rout but falling fall short of Beijing’s stated goal of 4500 and potentially signaling entry into the doldrums of low volume, low volatility and a tight trading range, The Wall Street Journal reported. While volume and volatility have fallen markedly, thanks in part to official clampdown on funding channels for stock purchases, many stocks extreme valuations remain high. Shanghai’s shares trade at an average 13 times price-to-earnings compared with seven times for Chinese firms in Hong Kong, but median valuations for mainland stocks to trade at around 39 times thanks to tech stocks’ influence.