Business · Markets · 12 hrs ago
Chinese stocks fall to their lowest level since August 2025
Chinese and Hong Kong shares fell on Tuesday as selling spread across technology and artificial intelligence stocks in Asian markets.
The CSI 300, which tracks major companies listed in Shanghai and Shenzhen, fell 0.6% by the midday break, reaching its lowest level since August 2025.
Investors questioned whether technology and AI companies can regain momentum, after a sharp correction in recent months and growing concern about profits and high valuations.
Chinese AI and semiconductor indexes had fallen more than 30% from their July peaks, while the Shanghai Composite reached a three-month low.
The pressure also hit electric vehicle makers, whose shares fell amid concern that China’s planned cut to export tax rebates from April could reduce exporters’ profit margins.
Chinese car companies also face fierce price competition at home and growing trade restrictions abroad, including an EU-China agreement to cap imports of Chinese hybrid cars.
The outlook for a near-term recovery remains uncertain, as analysts said financial concerns may not yet be fully reflected in technology share prices.
Chinese stocks fell on Tuesday, with the CSI 300 reaching its weakest level since August 2025.
The Shanghai Composite dropped 0.3% to 3,787.16, its lowest level in three months.
Technology and artificial intelligence shares faced selling pressure amid concerns about valuations, competition and company earnings.
Shares of new-energy vehicle companies also declined after China announced plans to reduce export VAT rebates from next April.
The yuan remained near its strongest level since 2023, despite the US dollar’s strength.
- Who
- Chinese stocks, including shares in technology, AI and new-energy vehicle companies, fell.
- What
- The CSI 300 reached its weakest level since August 2025.
- When
- Tuesday, 13 October 2026.
- Where
- Mainland China and Hong Kong stock markets.
- Why
- Investors faced concerns about chip stocks, AI competition, company earnings and high valuations. A planned reduction in export VAT rebates also weighed on new-energy vehicle shares.
This story does not have two clearly opposing sides.
The AI-related and semiconductor indexes later discussed in the report had fallen more than 30% from their July peaks.
Chinese stocks fell, taking the CSI 300 to its weakest level since August 2025.
- CSI 300
- Down 0.6% by Tuesday’s midday break; weakest level since August 2025
- Shanghai Composite
- Down 0.3% to 3,787.16
- STAR 50
- Fell as much as 3.6% before trimming losses to 0.7%
- Chinese AI companies index
- Down 0.9%, reaching a six-month low
- New-energy vehicle companies index
- Down 3.2% by the end of the morning session
- Yuan
- Traded near 6.69 per US dollar in the previous session
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What people are saying
It is difficult to be certain that concerns about the financial fundamentals of technology companies have been fully reflected in share prices, even after the sharp recent correction.
The loss of momentum in US AI shares could make a near-term recovery in their Chinese counterparts more difficult.