China’s benchmark CSI 300 has fallen into bear-market territory, dropping 20% from its June peak as a 10-week slide intensifies pressure on mainland equities. The index tracks 300 large companies listed in Shanghai and Shenzhen and has declined for 10 consecutive weeks.
By mid-October, the CSI 300 had reached its lowest level in more than a year as investors retreated from technology and artificial-intelligence shares. The technology-heavy STAR 50 had lost nearly 40% from its late-June peak, while semiconductor and AI-related indexes had fallen more than 30% from their July highs.
Global technology weakness added to concerns about intense competition and slowing profit growth among Chinese companies. Earlier support measures, including lower financing costs, expanded lending quotas for technology and small businesses, and mortgage subsidies for some first-time homebuyers, failed to restore confidence fully.
Chinese officials have signaled that market stability is a priority. Securities regulator chairman Wu Qing said authorities would strengthen risk monitoring, maintain policy tools and address risks linked to cross-border markets and leveraged products. The regulator also planned reforms for the STAR Market and ChiNext and approved the first batch of 18 actively managed exchange-traded funds.
State-backed funds appeared to increase purchases of broad-market exchange-traded funds during the losing streak, although there was no official confirmation of a coordinated buying campaign. Investors remain focused on whether policy support can counter weak domestic demand, excess capacity and margin pressure across several industries.