According to present rules, offshore ownership of A-share listed firm cannot exceed 30%. Photo: AFP

Goldman Sachs has created a financial-stress index for China, and the gauge shows rising stress on the country’s financial markets, reports Bloomberg.

But the measure has dropped from recent highs at the end of 2016 into January of this year, and are nowhere near levels seen during the 2015 devaluation debacle.

Goldman Sachs economists wrote in a May 16 note that “growth will not necessarily be affected significantly if a sharp increase in financial stress is followed by a quick reversal…

“Overall stress in the banking sector is not high in the long-term context, though has increased since end-2016…”

The note added that since the 2015 devaluation trauma, “financial stress in the market has been relatively high, though the stress has decreased in recent months.”