Shanghai bourse volatility boosts case for diversity

Industry players have voiced hope that mutual fund recognition and Stock Connect will calm volatilty on the Shanghai Stock Exchange by providing the bourse with urgently needed diversification. An interest rate cut by the People's Bank of China on November 21 helped to spark a bull-run on the Shanghai Composite, which rose by a quarter to peak at 3,020 points last Monday. However, the surge came to an abrupt end the following day when the index plunged 5.4%, only to reb…