China's stock market lags U.S. by record margin as blue chips enter bear market amid weak stimulus.

China's stock market is trailing the U.S. by the widest margin in history, with the S&P 500 trading at over twice the level of the Shanghai Composite. In 2026, the S&P 500 has gained 11.4%, while the Shanghai Composite and Hang Seng have fallen 7.0% and 9.9%, respectively. China's blue-chip CSI 300 index entered a bear market after a sharp decline, marking its longest losing streak since 2005. Despite some state-backed buying, investor confidence remains low due to weak domestic demand, incremental stimulus, and new tax policies on offshore trusts. The market faces uncertainty, with potential recovery hinging on stronger fiscal support and an end to the losing streak.

China-focused ETFs on Pluang show mixed investor behavior as of Oct 25, 2026 00:11 WIB. The iShares MSCI China ETF (MCHI) holds the largest market cap among the listed ETFs at $5.49B, with a slight 1-day decline of 0.04%. Meanwhile, the KraneShares CSI China Internet ETF (KWEB) trades at USD 23.14 with a market cap of $4.30B and a 1-day change of -0.30%. The iShares China Large-Cap ETF (FXI) has a market cap of $3.71B and a 1-day drop of 0.40%, reflecting ongoing cautious sentiment in Chinese equities despite some buying interest on Pluang.