China Stock Market's Winning Streak Ends Amid Regulatory Crackdown (SH:000001, SZ:399000)

The Shanghai Composite and its constituent成份 stocks faced a regulatory crackdown that began in late January 2026, signaling an end to a multi-year bull run. The Chinese government intensified oversight on listed companies, requiring improved disclosures, tighter lending controls, and restrictions on speculative trading. As of February 13, 2026, the Shanghai Composite closed at 3,421.53 (-1.8%) and the CSI 300 at 4,932.50 (-2.1%). The CSI 300 has declined 15% from its 2024 high, with the broader Hang Seng and MSCI China indices down 20% and 22%, respectively. The crackdown is part of broader measures to cool an overheated market and address financial stability risks.