Investor Confidence in China's Recovery Plummets as Stocks Enter Bear Market

Small investors in China are turning bearish on equities and instead investing in safer assets amid a stuttering economic recovery. Brokers and money managers had expected billions of yuan in excess savings would find their way to the stock market this year, but nervous households are turning their backs to pile into bonds and deposits. China's small investors account for some 60% of turnover, and their lack of interest is showing up in market data. The broad Shanghai Composite trades where it did early in 2022.