Chinese stocks suffered weakest start to new year in a decade
Retail investors sell amid US trade policy uncertainties
Further selling could trigger stampede, hurt economy
Beijing39;s halfhearted policies lead to investor disillusionment

SHANGHAIHONG KONG, Jan 14 Reuters Daytrader Lu Delong39;s optimism for a China stocks rally quickly evaporated in the first week of the year when, just three months after positioning for a surge fuelled by Beijing39;s stimulus pledges, he was forced to dump shares and tally his losses.

Many retail investors like Lu sold shares in early January, precipitating the weakest start to the new year in almost a decade for China39;s 11 trillion stock market.

The savage selloff is beyond my understanding. I haven39;t seen Trump announce anything fresh against China, said Lu, referring to the uncertainties surrounding U.S. trade policy under Presidentelect Donald Trump.

The only plausible explanation is that the market is squeezing the government for more forceful policies, said Lu, who turned bullish on Chinese stocks in late September but now plans to hold just cash in the runup to the Chinese Lunar New Year holidays starting late January.

Disillusioned with economic policies and the worries around U.S. trade tariffs, retail investors are selling, threatening to knock Chinese shares back into a yearslong downtrend.

Chinese stocks saw their first annual gain in 2024 following an unprecedented threeyear decline set off by the COVID19…