# China Market Volatility

China’s Trillion-Yuan Reversal: Market Volatility Tests the Resilience of the AI Trade

Chinese markets experienced a sharp late-day reversal on May 21, with major indices falling over 2% despite a massive 3.48 trillion RMB trading volume. The sell-off was led by a retreat in AI and semiconductor sectors, while defensive banking and smart-vehicle stocks provided a partial buffer against the decline.