Chinese Equities Flash Rebound Signs Following Steep Decline

The drag in Iran war has put Chinese stocks’ resilience to the test, but investors anticipate a rebound as key market indicators signal conditions often associated with turning points.

The benchmark CSI 300 Index tumbled 3.3% on Monday, its worst since the global tariff shock about a year ago, while another onshore benchmark slid deeper below the psychologically important 4,000 level. The setback has dragged a number of indicators — including momentum gauges and breadth — to levels last seen in previous routs that ultimately preceded market turnarounds.