China’s Smallest Stocks Flash Warning of Potential Downside in Second-Largest Equity Market – Bloomberg News Story Continues to Show Volatility and Uncertainty
SHANGHAI, China – The Chinese stock market is facing potential downside risks as small-cap stocks continue to underperform, despite renewed support pledges from regulators. While large-cap stocks saw a slight gain, small-cap shares sank to their lowest level since 2018, signaling a lack of confidence in policy support for the smaller companies. Investors are losing faith in small-cap stocks, believing that government support will focus on rescuing larger, blue-chip stocks. The stark underperformance of small-cap …