Business · Markets · 3 hrs ago
China’s CSI 300 falls 20% from June peak as authorities defend market
China’s CSI 300 has fallen about 20% from its June peak, entering a technical bear market.
The index tracks large companies listed in Shanghai and Shenzhen, and it is down about 10% since the start of the year.
The decline followed a slowdown in the rally in AI-related shares and investor withdrawals, with selling spreading across the market.
Chinese authorities are using state-owned investment institutions to support share prices as losses in mainland China spread to Hong Kong.
Weaker domestic demand and lower government spending may limit a lasting recovery, even with that support.
The available information does not say what further steps authorities may take.
China’s CSI 300 index fell about 20% from its June peak, entering a technical bear market.
The decline followed a slowdown in gains by artificial intelligence-related shares and investor fund outflows.
Chinese authorities used state-owned investment institutions to defend the market.
The fall in mainland Chinese shares spread to Hong Kong.
Reduced fiscal spending and weak domestic demand were limiting prospects for a sustained recovery.
- Who
- Chinese market authorities and investors.
- What
- The CSI 300 fell about 20% from its June peak, entering a technical bear market, as authorities moved to defend the market.
- When
- By October 29, 2026; the index had peaked in June.
- Where
- China’s Shanghai and Shenzhen stock markets, with the decline spreading to Hong Kong.
- Why
- AI-related share gains slowed and investors withdrew funds. Reduced fiscal spending and weak domestic demand also constrained recovery.
This story does not have two clearly opposing sides.
The CSI 300 reached its peak.
The index had fallen about 20% from its June peak and entered a technical bear market.
- CSI 300 decline
- About 20% from its June peak
- Year-to-date decline
- About 10%
- Markets
- Shanghai and Shenzhen
- Market response
- Chinese authorities used state-owned investment institutions to defend the market
- Pressures on recovery
- Reduced fiscal spending and weak domestic demand