Chinese stocks are increasingly expected to enter a prolonged downturn amid downward revisions to corporate earnings forecasts. The market is expected to continue losing approximately $3.5 trillion in market capitalization from May onward.
Chinese stocks are being weighed down by deteriorating corporate earnings, and selling pressure may persist. The market is watching developments following downward revisions to companies' earnings outlooks.
Since May, approximately $3.5 trillion in market capitalization has been lost overall, which is said to be contributing to the continuation of the prolonged downturn.