Beijing keeps putting financial stability and strategic technology investment ahead of broad consumer stimulus, so Chinese corporate earnings and equity valuations keep falling behind headline growth and each rally fades without policy support.
forming · confidence 40 · Emerging (watchlist) · tracking since October 25, 2026 · updated October 25, 2026
Chinese stocks have lost $3.5 trillion since May, the CSI 300 entered a bear market, and MSCI China companies that have reported are running 9% below consensus, while official data show industrial profits up 15.7% this year. The gap between corporate earnings and headline numbers, with no stimulus response so far, is the core of the thesis.
Supporting · October 25, 2026
Chinese stocks have lost $3.5 trillion since May as corporate earnings miss forecasts
Chinese stocks have lost $3.5 trillion since May, the CSI 300 entered a bear market, and MSCI China companies that have reported are running 9% below consensus, while official data show industrial profits up 15.7% this year. The gap between corporate earnings and headline numbers, with no stimulus response so far, is the core of the thesis.
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