12 NOVEMBER 2026
It has been a challenging few months for Chinese equity investors, following a period of strong outperformance that began in 2025.
As the chart shows, the rolling 12-month return of the Shanghai Composite Index is now on the verge of turning negative, reflecting a sharp loss of momentum.
Technology stocks have been a major driver of recent market movements, both upwards and downwards, reflecting their growing influence within China’s equity market.
The technology sector now accounts for approximately 30% of the China A-share market, up from just 10% a decade ago.
Conversely, traditional “old economy” sectors have seen their influence diminish with real estate now representing less than 1% of the market.
This structural evolution highlights how China’s equity market is becoming increasingly driven by innovation and technology, rather than the property and infrastructure sectors that historically powered its economic growth.
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