China Stocks Test Critical Support Levels as Selloff Extends
- Key equity benchmarks slide toward long-term trendlines
- Breaching support lines may hit sentiment, worsen selloff
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Chinese stock benchmarks are approaching key technical levels amid a relentless selloff, and a tumble below the thresholds may point to further losses ahead.
The downtrend comes as global investors remain pessimistic on China’s outlook, with its economy showing a fragile recovery and the real estate crisis continuing to worsen. Foreign outflows have persisted despite Beijing’s attempts to stabilize sentiment. Moody’s Investors Service’s wide-ranging outlook downgrade across China’s sovereign and corporate ratings has added to the headwinds.