China Stocks Close Lower: ChiNext Drops 2.61% as Liquor Maker Reclaims Top Spot

The divergence is the story: record highs in the big state banks while the growth-heavy ChiNext sells off on thin turnover suggests money rotating into defensive, high-yield financials rather than leaving the market outright. Kweichow Moutai reclaiming the top valuation spot reinforces that same preference for established cash-generative names over speculative growth. The breadth of the decline — over 4,300 stocks falling — points to a narrow, crowded trade. Whether bank leadership persists without broader participation is the open question.