China’s CSI 300 Enters Bear Market as Stock Sell-Off Deepens

By Staff, Agencies

China’s benchmark CSI 300 stock index entered bear-market territory on Thursday, falling approximately 20% from its June peak as persistent selling pressure continued to weigh on the country’s equity markets.

The index, which tracks 300 major companies listed on the Shanghai and Shenzhen stock exchanges, declined more than 1.4% during Thursday’s session and recorded a weekly loss of around 3.2%.

The latest drop followed 10 consecutive weeks of losses, highlighting the sustained weakness in Chinese stocks. A decline of at least 20% from a recent peak is commonly used to define a bear market.

Several economic challenges have contributed to the downturn, including concerns over corporate earnings, intensifying competition and excess industrial capacity. These pressures have squeezed profit margins across parts of China’s economy, raising questions about the outlook for business profitability.

The prolonged slowdown in the property sector has added to investor concerns, while persistently weak consumer demand continues to weigh on economic growth expectations.

Technology stocks have also faced increased selling pressure as investors reassess valuations linked to artificial intelligence. Concerns have grown over whether the substantial investments being made in the sector will generate sufficient returns to justify elevated valuations.

The CSI 300’s decline reflects mounting uncertainty surrounding China’s economic recovery, corporate performance and the sustainability of recent technology-sector investment.

With equities extending their losing streak, investors are closely monitoring developments in consumer spending, the property market, industrial profitability and technology valuations for signs of whether the market downturn will deepen further.