- CSI 1000 Index sinks 6.2% while CSI 300 ekes out a gain
- Investors expect policy support to be focused on large stocks
- China’s smallest stocks are flashing a warning about the potential downside for the world’s second-largest equity market if Beijing fails to follow through on a highly anticipated rescue campaign.
- While the country’s large-cap CSI 300 Index eked out a 0.7% gain on Monday after a renewed pledge from regulators to support the market, a gauge of small-cap shares sank more than 6% to the lowest level since 2018. That took the CSI 1000 Index’s losses to 27% this year after the measure underperformed larger peers by the most in more than nine years in January.
