The FTSE China A50 index experienced a sharp intraday reversal, abruptly erasing its earlier 0.6% gain and plunging into negative territory during Tuesday’s trading session. The blue-chip benchmark’s sudden downturn mirrored similar pullbacks across Chinese equity futures and coincided with accelerated selling in mainland markets.
This volatility spike reflects growing sensitivity to regulatory developments after unverified policy rumors circulated among traders. The index’s reversal was particularly notable as it occurred despite earlier strength in financial heavyweights that dominate the A50 composition, suggesting broad-based profit-taking behavior.
Market technicians note the A50 failed to hold above its 100-day moving average during the session, potentially triggering algorithmic selling. The swift momentum shift underscores persistent fragility in Chinese large-cap sentiment, even as some analysts argue current valuations already price in significant economic headwinds. Trading volumes surged during the downturn, indicating institutional participation in the selloff.
Related topics：
