Key facts
- Some Chinese funds investing overseas recorded drawdowns of as much as 32% since October, according to the report.
- Investment quota constraints pushed a US stock ETF to a premium of more than 40% above its underlying value, per the report.
- The Nasdaq 100 fell 6.4% on Thursday, its biggest one-day decline since March 2020, erasing $2.3 trillion in market value.
- The S&P 500 fell 4.4% and the Philadelphia Semiconductor Index dropped 12% in the same session.
Some Chinese funds that invest overseas recorded drawdowns of as much as 32% since October, while investment quota constraints drove a US stock exchange-traded fund to a premium of more than 40% above its underlying value, according to a report dated November 7, 2026.
The divergence widened after a US selloff in which the Nasdaq 100 fell 6.4% on Thursday, its biggest one-day decline since March 2020, erasing $2.3 trillion in market value, the report said. The S&P 500 fell 4.4% and the Philadelphia Semiconductor Index dropped 12% in the same session.
The report did not name the funds, the ETF or the size of the quota constraints. It gave no further detail on the trading session beyond the Thursday date.