China's CSI 300 stock index enters bear-market territory after falling 20% from June peak
- Benchmark extends prolonged sell-off amid concerns over corporate earnings, weak demand, and AI valuations
By Mucahithan Avcioglu
ISTANBUL (AA) - China's benchmark CSI 300 index entered bear-market territory during trading Thursday, falling about 20% from its June peak as a prolonged sell-off deepened.
The index, which tracks 300 major stocks listed in Shanghai and Shenzhen, fell more than 1.4% during the session and was down around 3.2% for the week.
The latest decline followed 10 consecutive weeks of losses, underscoring sustained pressure on Chinese equities.
A fall of 20% or more from a recent peak is commonly described as bear-market territory.
The downturn comes amid concerns over corporate earnings, intense competition, and excess industrial capacity, which have squeezed profit margins in parts of China's economy.
A prolonged property-sector slowdown and persistent weakness in consumer demand have also weighed on the economic outlook.
Technology shares have faced additional selling pressure amid concerns over artificial intelligence valuations and whether substantial investment in the sector will generate sufficient returns.
Mücahithan Avcıoğlu