China’s $11 trillion stock market, one of the world’s largest, is underperforming, delivering meager returns that dampen investor confidence and complicate President Xi Jinping’s 5% economic growth target. This reader-friendly article dives into the reasons behind the market’s struggles, their impact on Xi’s agenda, and the broader implications, tailored for those tracking global markets and China’s economic challenges. Why Is China’s Market Struggling? Poor Returns: The CSI 300 Index, a key benchmark, has risen just 7% in 2025, trailing the S&P 500’s 20%+ gains. A $10,000 investment in the CSI 300 a decade ago grew to $13,000, while the same in the S&P 500 tripled to over $30,000. Structural Issues: Established 35 years ago to fund state-owned enterprises (SOEs), the...