Shanghai Composite Lags Despite China's Economic Growth

The Shanghai Composite Index closed near 4,113 points on Friday, remaining about 33% below its 2007 peak, despite China's significant economic expansion over the past two decades. According to BeInCrypto, China's nominal output has grown roughly sevenfold, and the country posted a record $1.19 trillion trade surplus in 2025. However, the structural gap between China's real economy and its stock market persists, with retail traders dominating daily turnover and institutional investment remaining thin. Additionally, property market challenges and regulatory actions continue to weigh on market performance.