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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV