China A-share sentiment drops amid declining market turnover

Published 12/09/2025, 10:18
© Reuters.

Investing.com -- China A-share investor sentiment declined compared to the previous cycle, with both weighted and simple Morgan Stanley A-Share Sentiment Indicator (MSASI) falling significantly.

The weighted MSASI dropped by 14 percentage points to 112%, while the simple MSASI fell by 16 percentage points to 106% compared to the September 3 cutoff date.

Daily turnover metrics showed broad declines across Chinese markets. ChiNext turnover decreased by 14% to 568 billion yuan, while A-shares turnover fell 16% to 1.982 trillion yuan. Equity futures turnover experienced an even steeper decline of 28% to 404 billion yuan, and Northbound trading dropped 21% to 132 billion yuan.

The Relative Strength Index over 30 days (RSI-30D) decreased by 7% compared to the September 3 cutoff date.

Despite the overall negative sentiment, consensus earnings estimate revision breadth, while remaining negative, showed slight improvement compared to the previous week.

Southbound flows continued to show strength, with net inflows of $5.2 billion from September 4-10. Year-to-date net inflows have reached $133.4 billion, with $8.7 billion flowing in month-to-date.

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