Chinese stocks faced a significant downturn, with major indices like the Shanghai Composite and the Hang Seng experiencing their worst drops in years. The Shanghai Composite plummeted 7%, ending a 10-day winning streak, while the Hang Seng index saw a staggering 9.5% drop. This sell-off has raised alarm among investors, who are becoming increasingly skeptical about the effectiveness of Beijing's economic stimulus measures. Despite recent rallies, optimism has faded as the markets reacted negatively to signs of insufficient support from policymakers. Environmentally, global markets diverged; while Wall Street moved towards record highs, the struggles of Chinese equities created a stark contrast. Analysts are left questioning the sustainability of China's previous market gains and the potential for further declines.