China's A-share market fell more sharply this morning despite only modest declines abroad. Market participants say the divergence reflects sentiment amplification, not changes in valuations or earnings; investor confidence remains fragile and can trigger panic selling during short-term shocks. Analysts warn that without stronger consensus on the long-term value of Chinese assets, external disturbances can magnify volatility, but interviewed experts view those external factors as temporary. They

China's A-share market fell more sharply this morning despite only modest declines abroad. Market participants say the divergence reflects sentiment amplification, not changes in valuations or earnings; investor confidence remains fragile and can trigger panic selling during short-term shocks. Analysts warn that without stronger consensus on the long-term value of Chinese assets, external disturbances can magnify volatility, but interviewed experts view those external factors as temporary. They point to economic reform progress, stable-to-improving fundamentals, policy support and liquidity as the determinants of market resilience, with China asset safety premia and structural resilience as the core backing.