The three major A-share indices closed lower collectively
On November 6, the three major A-share indices closed lower collectively, with the Shanghai Composite Index falling 1.1%, and over 4,700 stocks across both markets declining.
On November 6, the three major A-share indices closed lower collectively, with the Shanghai Composite Index falling 1.1%, and over 4,700 stocks across both markets declining.
A report released by Bloomberg Economics on November 6 stated that if the Democratic Party slows down AI investment and data center construction after a major victory in the U.S. midterm elections, China's growth, which relies on AI hardware exports, will be hit. Net exports contributed nearly 40% of China's economic growth in the third quarter, and chips and computer products accounted for 40% of the year-on-year increase in exports in the first nine months.
At the Bu Ming Bai Festival held in Tokyo, the Bu Ming Bai Podcast invited Professor Xu Chenggang to discuss the institutional logic behind China's economic growth and recession, as well as how ordinary people can cope, using his book 'The Institutional Genes' as a starting point.
The Wall Street Journal reports that the Chinese stock market has entered a bear market, with Morgan Stanley warning of a potential further decline of 10% to 15% before hitting bottom, noting that state-backed fund purchases may only provide short-term support.
On November 2, the Chinese central bank announced that it will launch the Securities, Funds and Insurance companies Swap Facility (SFISF) operation on November 3, with a one-year term that can be extended as appropriate. 31 securities and fund companies have already reported their demand, with application quotas exceeding 100 billion RMB. This marks the third operation following those in October 2024 and January 2025.
October 30 was the last trading day of October. The Shanghai Composite Index fell 1.44%, the Shenzhen Component Index fell 2.73%, the ChiNext Index fell 4.13%, and the STAR 50 Index fell 5.48%. Over 4,600 stocks across the market declined. For the month, the ChiNext Index fell by a cumulative 23.02%, and the STAR 50 Index fell by 24.13%.
The 99th percentile SOFR transaction rate rose to 4.04%, exceeding the Federal Reserve's 4% window rate, and overnight repo volume rose to $3.147 trillion.
From October 26, the Shanghai Composite Index and others will adopt new compilation rules: the weight of a single stock is capped at 15%, and the removal of risk-warning stocks will be calculated based on the announcement date rather than the implementation date. Stocks whose announcement and implementation fall in different months may exit the index earlier. The market has recently been in a downtrend.
On October 26, Bloomberg reported on a Morgan Stanley study saying that the Chinese stock market may not have bottomed out yet, and that offshore Chinese stocks could fall another 10%–15% before approaching historically low valuations, with weak economic consumption, pressure on e-commerce, and fears of tax-triggered selling of trusts intensifying the adjustment.
Bloomberg reported on October 25 that China's stock market has shrunk by about $3.5 trillion from its high earlier this year in May, with the CSI 300 index falling into a bear market the previous week, as weak consumption and price wars squeeze corporate profits.
On October 22, all three major A-share indexes closed lower, with nearly 5,000 stocks across the market declining. The ChiNext Index fell 4.37% to close at 2,576.90 points, a cumulative pullback of 41.17% from its intraday high of 4,380.41 points on June 25 over about four months.
According to Radio France Internationale (RFI), the Hong Kong Securities and Futures Commission took enforcement action over suspicions that two Chinese-funded companies engaged in market manipulation during their initial public offerings (IPOs), freezing more than HK$4.6 billion in assets, a record high freeze amount in the history of the Hong Kong securities regulator.
On October 13, 2026, according to social media reports, Chinese regulatory authorities have officially approved the U.S. financial giant Visa to establish a locally registered bank card clearing institution within China. This marks a new milestone in the expansion of overseas card organizations' RMB clearing businesses in China and further promotes the opening up of China's financial payment and clearing market.
According to a disclosure by X user @ChinaSelect, some of the largest financial institutions in the United States have helped raise billions of dollars for companies linked to the Chinese Communist Party's military and human rights abuses. This week, these financial institutions are holding earnings calls with investors and journalists, and whether they will continue to underwrite initial public offerings (IPOs) has drawn attention.
On October 13, the IMF released its latest World Economic Outlook, raising Taiwan's 2026 growth forecast from 5.2% in April to 10.7%, while lowering the mainland's forecast by 0.1 percentage points to 4.5%; Taiwan's growth is mainly driven by demand for AI and advanced chips.