One Corner of China’s Weak Market Is Seeing a $25 Billion Rally

(Bloomberg) — Investors desperate for returns in China’s lackluster equities are scooping up some of the smallest and most volatile stocks, sparking a $25 billion rally in one corner of the market in a little over a month.

The Beijing Stock Exchange 50 Index, a gauge of early-stage innovative companies listed in the capital, has gained nearly 50% since its Oct. 23 low. Volumes on the measure, which attracted little interest since its launch in November 2022, have surged in recent weeks and are now catching the attention of financial authorities.