The Hang Seng China Enterprises Index crashed 6.5% this week - its worst weekly loss since March 2023 with Wednesday seeing the biggest daily loss since Oct 2022 as the index plummeted to key support levels around the Oct 2022 lows...

For context, Chinese and Hong Kong stocks have seen some $6.3 trillion of market value wiped out since a peak reached in 2021...

But, as we detailed earlier in the week, authorities have ruled out the use of massive stimulus to revive the flagging economy, leaving traders wondering when things will improve.

"What we are seeing this year so far really is a continuation of what we saw last year," John Lin, AllianceBernstein's chief investment officer of China equities, said in an Jan. 17 interview on Bloomberg TV.

"These squeezing-the-toothpaste type of stimulus policies so far haven't been able to turn around the underlying bottom-up fundamentals of areas like the property sector."

It gets worse as China is setting grimmer and grimmer milestones by the day:

Tokyo has overtaken Shanghai as Asia's biggest equity market...

India's valuation premium over China has hit a record.

Locally, a meltdown in Chinese shares is wreaking havoc on the nation's asset management industry, pushing mutual fund closures to a five-year high.

Most importantly, as we noted previously, the lack of stimulus (amid China's real estate sector crisis and escalating tensions with Washington on trade) has had a very adverse impact on both economic and market sentiment at a time when China's middle class is growing increasingly restless and pitchforky, resulting in a surge in labor strikes and (mostly peaceful) protests.