The Chinese stock market has faced significant pressure recently, with investors continuously selling shares, especially in technology and growth sectors. This has led the government and regulatory bodies to swiftly implement measures to support the market and restore investor confidence.
Amid the steep decline in Chinese stocks, many investors may be wondering if this is an opportunity to buy shares at lower prices or if it is still too soon to reinvest. Those holding Chinese stocks at a loss face the dilemma of whether to hold on and wait for a market rebound or cut losses to reduce risk.
Thairath Money explores perspectives and investment strategies from experts to answer how different investor groups should plan their responses to the current Chinese stock market situation and when the timing is right to invest.
In 2026, the Chinese stock market experienced a sharp correction, particularly in technology and growth stocks which faced sustained selling pressure. This is reflected in the SSE STAR 50 index, comprising major technology and innovation companies listed in Shanghai, which declined over 25% in six months.
Historical returns as of 3 Nov 2026 at approximately 09:30 Thailand time show the main Chinese stock market indices have declined over various time periods as follows:
Reuters Reports indicate that Chinese regulatory authorities announced multiple measures to support the stock market after the CSI300 index fell 8.5% in October, marking the steepest monthly decline since early 2016.
The pressure stems from a still-weak Chinese economy, sluggish domestic consumption, problems in the real estate sector, and technology stock sell-offs that have hurt investor confidence.
A key measure includes the People's Bank of China (PBOC) preparing swap operations with financial institutions to boost liquidity for stock purchases by more than 100 billion yuan (approximately 15 billion U.S. dollars). Thirty-one securities firms and fund management companies have applied to participate in this facility.
Additionally, the PBOC has transformed its stock repurchase lending program from a temporary to a long-term mechanism and reduced the interest rate from 1.25% to 1% to lower financing costs and encourage more stock purchases.
The China Securities Regulatory Commission (CSRC) has urged large companies, including leading tech firms, to accelerate stock buybacks to support share prices and market capitalization. It also encourages newly launched ETFs to invest rapidly and fund managers to buy shares during market downturns.
Chinese authorities are also considering relaxing margin trading rules to increase market liquidity. These measures reflect the government's efforts to stabilize the stock market amid selling pressure and economic concerns.
Bodin Putthin, AISA, CFP, Assistant Managing Director of Investment Strategy at Eastspring Asset Management (Thailand) Bodin told Thairath Money that the continuous decline of the Chinese stock market since Q3 and Q4 reflects the market’s major concern about disappointing economic stimulus measures. Although Q3 GDP grew 4.5%, slightly better than expected, consumption and retail growth remained very weak.
Furthermore, China's stimulus approach has shifted away from broad-based injections toward focusing on technology and AI sectors, which currently face profit-taking worldwide and price wars that have also negatively impacted Chinese tech stocks.
The most worrying factors include persistently weak domestic demand and the prolonged real estate crisis with no signs of recovery, which directly affects the earnings growth of listed companies. The Chinese stock market structure still heavily depends on banking and domestic consumption sectors.
Bodin views the government's market support measures as short-term aids that prevent a deeper market plunge but are insufficient to restore confidence or drive a long-term recovery. Ultimately, market growth depends on fundamentals, with three key factors to watch:
For Thai investors without Chinese stocks who see the indices falling sharply, the recommendation is "not to rush into buying". The next 1-3 months remain uncertain, so it's advisable to wait for a stable base or signs of a turnaround before gradually accumulating shares, due to ongoing internal and external uncertainties including US-China negotiations.
Long-term investors seeking to accumulate shares should consider entering with only one-third of their intended capital initially and observe market developments. Active investment focusing on thematic stock selection, especially in New Economy sectors supported by policies, is preferable to traditional economic sectors.
For investors currently holding Chinese stocks at a loss, decisions should be based on loss levels. Those with smaller losses (about 5-10%) are advised to gradually cut losses, while those with heavier losses should recognize that recovery to break-even prices may take a long time.
Given the ongoing volatility in developed global stock markets, immediately switching investments to other markets carries risks. It is recommended to wait until losses narrow before gradually cutting losses.
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