As shown in the chart below, there has been medium-term correlation between Chinese stocks and the First Growths. Earlier in the year we wondered whether this was beginning to weaken. In recent weeks the two have completely diverged: macro economic concerns have seen the Shanghai Composite Index plunge 15% since the start of June, while the Liv-ex 50 has held steady.
For the market to find its feet, it needs to rely less heavily on China. But do the signs below suggest that Chinese demand is no longer as important to fine wine, or that the market is simply lagging?