NEW YORK (TheStreet) -- Casual observers of Chinese stock markets tend to, naturally, focus on the widely referenced broad indices, the Shanghai Composite and the Shenzhen Composite.
And the picture is not pretty. They have been on a steady decline since early May and still show little sign of rebounding. Ironically, the Chinese media and webosphere also tend to narrowly focus on the broad indices, adding to an ever-increasingly gloomy sense of doom.
But if one looks beyond the broad indices, a very different picture emerges. The blue chips, roughly represented by the Shanghai 50 Index, have shown remarkable resilience in the last three months (see chart below).
Some sectors, such as real estate and banking, have performed well. The real culprits of decline are generally the small-caps, liquor and food.
Chart 1: Three-month performance of FXI, Shanghai Composite and Shanghai 50 Indices
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