The FTSE China A50 Index opened higher on Monday after a volatile week. Tech-focused Asian markets suffered their worst drops in years, driven by semiconductor demand worries.
Chinese equities rallied on anticipated liquidity injections following a meeting between the central bank and financial institutions aimed at deploying market-stabilizing measures.
Profit margins for Chinese companies sit well below global averages, pressured by stagnant home consumption and currency appreciation eating into export returns, according to Reuters analysis.
Industries favoured by government, such as carmaking and technology hardware, storage and peripherals, had margins of just 2.5% and 3.5%, respectively.
Driven by strong export performance, economic growth quickened to 4.5% in Q3. Yet consumer spending stagnated, and a persistent 5-year housing downturn continues to drain family wealth.
Chinese exporters have been hit by a rally in the yuan since April 2025, during which it has gained around 10%. IMF officials argue the yuan remains undervalued, adding to the upward pressures.
EBC Financial Group analyst says China A50 has formed a double bottom pattern. A close above the 12,872 level could set up a retest of the major structural peak at 13,063–13,070.
Asset Recap
As of market close on 6 November, among EBC major products, IREN shares led gains after fiscal Q1 results beat expectations and AI cloud revenue nearly tripled.
Paycom Software extended its losses following Q3 earnings report due to a combination of conservative forward guidance and heavy profit-taking despite significant operational beat.
Japanese equities suffered their sharpest one-day drop since the introduction of Trump's "liberation day" tariffs in April 2025. But the futures surged in the US trading sessions on NASDAQ 100 rally.
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