Analysts see the same lack of confidence in today's Chinese households and companies that Japan grappled with in the 1990s.
But in China's case there is a key difference; there is no deflationary threat yet, nor have banks switched off lending.
Fan Gang, a prominent economist and former adviser to the central bank, told a forum in June that China faces a liquidity trap but not a Japan-style deflationary morass.
China's policymakers have cut rates and encouraged banks to lend more in efforts to revive economic growth after the pandemic.
China's 220 million retail stock investors, equivalent to Brazil's population and the biggest drivers of daily moves, have kept to the sidelines this year.
Persons:
Florence Lo, Asia Pacific Alicia Garcia Herrero, Byron Gill, Gill, Betty Wang, Wu, John, Winni Zhou, Rae Wee, Vidya Ranganathan, Shri Navaratnam
Organizations:
REUTERS, Companies, Asia Pacific, Pacific Opportunities Fund, U.S, Bank, ANZ, Eastroc Beverage, China Merchants Bank, Bank of Ningbo's, Thomson
Locations:
SHANGHAI, SINGAPORE, Japan, China, Bank, Shanghai, Singapore