"Market Turmoil: China's Small-Cap Crash and Wall Street's Fall"

China's small-cap stocks are signaling potential downside for the country's equity market as they continue to underperform, prompting concerns about the lack of policy support for smaller companies. The stark underperformance of small-cap shares suggests that investors are losing confidence in these stocks, while large-cap stocks are seen as the focus of potential policy rescue efforts. The market is awaiting more forceful policy stimulus to restore confidence and the economy, with concerns about margin calls, forced liquidation, and selling pressure. Despite pledges from regulators to prevent abnormal fluctuations and crack down on illegal activities, downward pressure is expected to persist unless bolder steps are taken to address the lack of market confidence.