China's stocks lose $3.5 trillion as weak demand squeezes profits (opens the source in a new tab)
- Chinese stocks have shed $3.5tn since a May peak, Bloomberg data in Moneycontrol show, pushing the CSI 300 into a bear market. Reporting MSCI China firms have missed forecasts by 9% on average, led by CATL, while cash-hungry tech giants sell shares.
- A Mint column by IIM Indore's G. Venkat Raman explains why: in September exports jumped 36.3% and industrial output 5.5%, but retail sales rose just 1.1%. Beijing calls it strong supply, weak demand.
- Property gloom and job worries keep households saving, and local rivalry breeds price wars. With growth on target at 4.5%, big stimulus looks unlikely.
- $3.5tn
- Stock value lost since May
- +36.3%
- September exports
- +1.1%
- September retail sales
Why it matters China shows that winning on production does not mean winning on profits. The surplus it cannot sell at home lands abroad as cheap goods, so Europe, America and India all inherit China's demand problem.
Other side Low valuations, state buying and low Bond yield The annual return a bond pays at today's price; rising yields mean borrowing is getting dearer. can pull money back fast, and Bridgewater's China arm is cautiously optimistic. A credible push on household incomes from the Fifth Plenum would change the story.