China’s stock market fell sharply on 4 September 2025 as regulators hinted at measures to curb speculative trading, pushing the Shanghai Stock Exchange (SSE) Composite Index below 3,800 points. The Chinese government aims to protect small investors and prevent overheating, not suppress the market, amid a recent surge in retail participation following a strong August rally. SMU Associate Professor of Finance Fu Fangjian said that the Chinese government’s intention is not to suppress the stock market, but to prevent excessive speculative sentiment and protect small investors and market novices. He added that by regulating brokerage marketing practices and reducing the risk of overhype, the measures help create a healthier market environment.
