Chart of the week: China A50 outperforms global equities amid AI stock selloff

• Global equities saw increased downside volatility in the week of 3 November, led by sharp selloffs in major AI stocks such as Palantir and Nvidia, which overshadowed optimism from easing US–China trade tensions.
• China’s FTSE A50 and CSI 300 outperformed global peers, each gaining 0.5% for the week, while the US S&P 500 and Nasdaq 100 fell by 1.8% and 3.5%, respectively.
• The China A50 CFD Index remains supported above its 20-day and 50-day moving averages, with improving bullish momentum as long as it holds above the 15,150 key medium-term support level.

For the week of November 3, global stock markets experienced heightened downside volatility, driven by a sharp sell-off in several Artificial Intelligence (AI) names, including Palantir Technologies and Nvidia. The rout overshadowed the positive sentiment from easing US–China trade tensions.

Amid the broad market weakness, China’s benchmark indices, the FTSE China A50 and CSI 300, stood out, posting weekly gains of 0.5%, outperforming the US S&P 500 (-1.8%) and Nasdaq 100 (-3.5%) (see Fig. 1).

Let’s now examine the movement of the China A50 CFD Index from a technical analysis perspective.

Since the rapid 6.9% (high to low) correction seen in the China A50 CFD Index (a proxy for the FTSE China A50 futures) from October 9, 2025, to October 10, 2025, it has started to oscillate within a medium-term uptrend (see Fig. 2).

Several positive elements are signaling the start of another potential bullish impulsive up move sequence.

Firstly, the price actions of the China A50 CFD Index have traded above its 20-day and 50-day moving averages since 21 October 2025, and the recent decline of 4.4% from 28 October 2025 high to 5 November 2025 low has managed to stage a rebound after a retest on its 50-day moving average.

Secondly, the 4-hour RSI momentum indicator has continued to form a series of “higher lows” since 3 November 2025 after reaching oversold territory, supported by an ascending trendline that signals improving bullish momentum.

Hence, watch the 15,150 key medium-term pivotal support on the China A50 CFD Index to maintain the ongoing medium-term uptrend phase. Medium-term resistances will be at 15,740 and 16,340/16,540 (also a Fibonacci extension).

On the other hand, a break below 15,150 invalidates the bullish scenario to kickstart another corrective decline to expose the next medium-term supports at 14,850 and 14,665.