China’s stock markets are the great global exception

China’s markets have missed the AI rally. Reported facts: Shenzhen’s tech-heavy ChiNext has lost about 40% in four months and in October the CSI 300 was down 20% from its June peak, a bear market; earlier in 2026 regulators’ “slow bull” seemed on track, with chipmaker CXMT raising US$9.16B (almost $10bn) in a July Shanghai listing. Moonshot AI (Kimi K3), which hopes to list in Hong Kong next year, is cited as an example of China’s AI strength, and Kimi’s success threatens listed rival MiniMax. The Economist blames AI scepticism (Chinese firms are reluctant to pay for software) and fiscal caution: an AI-related export boom, with semiconductor exports more than doubling in nine months, let Beijing skip stimulus, and that austerity hit domestic demand. Counterweights: the state “national team” is buying again via Central Huijin ETFs (per Macquarie’s Larry Hu), the government is mobilising “six networks” investment, growth has picked up and the CSI 300 is back above 4,000 for now.