BSE Falls 25% This Year, Becoming the Weakest Market—Where Will the Turning Point Come From?

Since 2026, the BSE 50 Index has significantly underperformed major broad-based indices. This reflects not only the mean reversion after small-cap growth valuations expanded in 2025, but also the supply-demand mismatch between accelerated IPO supply and shrinking secondary-market liquidity. After consecutive declines, BSE-listed A-shares have re-established a valuation discount relative to ChiNext and the STAR Market, with the share of low-valuation companies rising notably—while earnings quality and the quality of newly listed firms have not deteriorated in tandem. Meanwhile, although public funds and index-linked capital are expanding, their absolute scale remains insufficient to shift market pricing. As the Beijing Stock Exchange transitions from an "asset expansion" phase into a "tooling improvement" stage, is the market currently forming a left-side entry window where risk-reward improves first, awaiting capital confirmation?