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China blue-chip index confirms bear market as AI stocks slump

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China blue-chip index confirms bear market as AI stocks slump

Business News Tech AI China blue-chip index confirms bear market as AI stocks slump

China's CSI300 Index fell by 1.8% to reach a 15-month low, confirming a bear market status. The Shanghai Composite Index similarly decreased by 1.5%, reflecting similar investor concerns. A significant selloff in tech shares contributed to the market decline, highlighting the impact of tepid stimulus expectations. In Hong Kong, the Hang Seng Index also fell by 3%, driven by tax liabilities affecting local companies.

China's blue-chip index crumbled to a 15-month low and confirmed a bear market on Thursday, as AI shares slumped on fears that growth and valuations were unsustainable. The CSI300 Index dropped 1.8% to close at 4,036.30, its lowest level since July 2025. It is now 20.2% below its most recent closing peak on June 22, crossing the 20% threshold that typically defines a bear market. Based on closing levels, the index has never surpassed the peak it set in 2007, with the momentum that drove the market to a five-year high in June having since reversed sharply.

"The market is in the dump," said Hao Hong, managing partner and chief investment officer at Lotus Asset Management in Hong Kong. 5%, also its lowest in more than a year. A sweeping selloff in tech leaders across Asia, along with tepid stimulus expectations and a lack of fresh catalysts, triggered a broad rush to sell in China. Only the consumer staples and utilities sub-indexes eked out gains. "The National Team has been rather hesitant to make a move," Hong added, referring to China's state-owned investment funds that often intervene during selloffs.


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