China Stocks Close Flat as Turnover Drops Below 1.8 Trillion Yuan

The flat close masks a notable breadth deterioration: more than 3,500 stocks fell even as indexes edged up, and turnover dipping under 1.8 trillion yuan signals fading participation. This divergence suggests index resilience is increasingly driven by a narrow set of themes, like liquid cooling, rather than broad-based buying. The key watch is whether liquidity continues to contract, which would test the sustainability of this narrow leadership. For market observers, the interplay between shrinking volume and persistent sector-specific momentum is the dynamic to track going forward.