China's benchmark stock index just fell for a record 10 straight weeks, even as the economy grew faster than expected

The CSI 300 dropped 3.4% last week, stretching its losing run to 10 weeks, the longest since the index launched in 2005, per Bloomberg

It is now down about 17% from its June peak and closing in on a technical bear market. The Nasdaq style STAR 50 has tumbled nearly 40% this half, the worst performing major tech index in the world

Meanwhile China's GDP grew 4.5% in Q3 from a year earlier, beating the 4.4% Reuters poll and picking up from 4.3% in Q2, the slowest pace since 2022

The growth is lopsided. Industrial output rose 5.5% in September and the monthly trade surplus hit a record $133.5B, but retail sales grew just 1.1%, fixed asset investment is down 7.2% this year and real estate investment is down 20.6%

Beijing looks like it is stepping in. Inflows into ETFs favored by the state backed "National Team" hit their highest since July last week, and the CSI 300 edged higher Monday after the GDP data

A growth beat next to a record losing streak says Chinese stocks are trading the AI unwind, not the GDP print. Bloomberg calls Chinese firms the biggest losers of the faltering global AI trade. Factories and exports are carrying the economy while households hold back, and the National Team can slow a selloff but it cannot make consumers spend

Source: StockMarket.News