> ## Content Index > Fetch the complete content index at: https://www.theglobalvoice.com/llms.txt > Use this file to discover other available public pages before exploring further. # China's CSI 300 Enters Bear Market After 20% Fall - URL: https://www.theglobalvoice.com/chinas-csi-300-enters-bear-market-after-20-fall/ - Published: 2026-10-23T04:17:19.000Z - Updated: 2026-10-23T04:17:19.000Z - Description: China's CSI 300 entered bear-market territory on October 22 after losing more than 20% from its June peak. Technology shares led the decline, while weak consumption, disappointing earnings and fading hopes of government stimulus added to the pressure. - Author: TGV Desk - Tags: China, Stock Markets, CSI 300, Asian Markets, Artificial Intelligence, Chinese Economy, Global Markets, Top Stories, The Day So Far, has-audio China's biggest listed companies have lost a fifth of their market value since June, bringing an abrupt end to a rally that had lifted mainland equities to a five-year high. The CSI 300 entered bear-market territory on Thursday, October 22, as selling spread from technology shares to the broader Chinese market. The benchmark, which tracks 300 major companies listed in Shanghai and Shenzhen, fell approximately 1.8% during Thursday's session, extending its decline from the June 22 closing peak to more than 20%. It was the index's tenth consecutive week of losses, with share prices retreating to levels last seen in July 2025. The fall has been particularly severe among companies linked to artificial intelligence. China's semiconductor index dropped 3.6% on Thursday, while its AI index lost 3.3%. Investors have been reassessing the valuations of businesses expected to benefit from the enormous spending on chips, data centres and advanced computing. That reversal is part of a [wider selloff in Asian semiconductor markets](https://www.theglobalvoice.com/asian-chip-stocks-plunge-as-ai-boom-faces-reckoning/), where questions over financing costs and the commercial returns from AI investment have already put pressure on major technology companies. For China, however, the retreat extends beyond technology. Weak consumer spending, disappointing corporate earnings and persistent problems in the property market have left investors questioning how much of the country's economic growth will translate into stronger company profits. The latest official figures illustrate the uneven conditions facing Chinese businesses. The [National Bureau of Statistics reported](https://www.stats.gov.cn/english/PressRelease/202610/t20261021%5F1965671.html?ref=theglobalvoice.com) that the economy grew 4.5% in the third quarter, compared with 4.3% in the preceding three months. Manufacturing expanded 5.9%, while construction activity contracted 4.4%. The economy is still growing, but production and investment have been stronger than household demand. Manufacturers can increase output without enjoying a comparable improvement in profitability when competition remains intense and customers resist higher prices. --- Expectations of substantial government intervention have also faded. Beijing's recent economic performance has reduced the apparent urgency for broad stimulus measures, disappointing investors who had hoped that policymakers would provide stronger support for consumption and financial markets. The selling has reached companies outside the AI industry. Battery manufacturer Contemporary Amperex Technology, better known as CATL, suffered a sharp decline after reporting slower-than-expected profit growth, drawing attention to the difficulties facing businesses previously supported by rapid expansion and government incentives. The weakness comes despite continued strength in Chinese exports and high-technology manufacturing. Earlier [IMF assessments of AI-related trade](https://www.theglobalvoice.com/ai-investment-gives-global-trade-a-boost-despite-tariffs-and-energy-costs/) identified Chinese suppliers among the beneficiaries of rising global demand for computing equipment, although that commercial activity has not prevented technology valuations from falling. A bear market describes a decline of at least 20% from a recent peak. It does not necessarily signal an economic recession, and China's latest GDP figures show continued expansion. What has deteriorated is investors' assessment of future corporate earnings. After months of rewarding expectations of technological growth and policy support, the market is assigning greater weight to weak consumption, pressure on profit margins and the possibility that the AI investment boom will deliver less than previously anticipated.