'Correction' in China stocks nearing its end

SINGAPORE - A "correction" in Chinese stocks that has made them Asia's worst performers this year may be nearing its end given the duration and degree of the slump, according to Elliott Wave International Inc.

The current leg of declines in the Shanghai Composite Index has lasted 40 weeks, similar to an earlier stretch of gains, while the declines have amounted to almost half the magnitude of the previous rally, Elliott Wave said.

"These price and time relationships should mark the end of the correction in the index," the researcher said in its June Asian-Pacific Financial Forecast report.