China’s Stocks Enter Bear Market as Selling Spreads Across Asia

China’s benchmark CSI 300 index entered a bear market on Thursday after declining for 10 straight weeks, in line with LSEG information cited by CNBC.

Bloomberg linked the drop to fading stimulus hopes, weak earnings and worries over the worldwide synthetic intelligence (AI) commerce. Meanwhile, inventory markets in South Korea, Japan and Taiwan additionally fell.

China’s Stocks Slide Into Bear Market 

The CSI 300 stood at 4,060.19 at Thursday’s morning break, about 20% beneath its June peak. The index was additionally down 13.94% from its January 1 degree.

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Despite the slide, policymakers have offered little new support up to now. On Tuesday, China held its one-year mortgage prime fee (LPR) at 3.0% and the five-year LPR at 3.5%. Both rates have now stayed unchanged for 17 straight months.

Analysts at Maybank stated steady headline development makes new fiscal and financial stimulus much less pressing, Reuters reported. That development reached 4.5% within the third quarter, beating forecasts. BeInCrypto beforehand reported that the shedding streak has continued despite the stronger data.

State-backed shopping for has additionally been smaller than earlier state promoting. Central Huijin leads China’s market stabilization efforts. It raised $231 billion by exchange-traded fund (ETF) gross sales within the first half.

Since purchases resumed in July, it has reinvested solely about $43 billion, Bloomberg Intelligence analysts estimate. That leaves roughly $188 billion accessible. However, the analysts warned that state shopping for alone might not ship a long-lasting restoration.

Selling Spreads From Seoul to Taipei

The stress prolonged past the mainland on Thursday. South Korea’s KOSPI fell 2.56% by midday to 5,588.94, down from its earlier shut of 5,735.66.

Japan’s Nikkei 225 traded 1.65% beneath Wednesday’s shut by early afternoon, at 63,554.76. Similarly, Taiwan’s TAIEX slid 1.15% from its prior near 46,346.92 in late-morning commerce.

Hong Kong additionally misplaced floor. A gauge of main Chinese firms listed within the metropolis fell as a lot as 2.9% on Thursday. 

The Hang Seng Tech Index had already touched a two-year low on Tuesday as AI {hardware} shares fell. On Wednesday, Tencent slipped beneath HK$400, and CATL dropped on weaker revenue development and fierce competitors.

Sovereign Funds Step Back Into China

In distinction, some long-term traders have elevated their publicity to China this yr. Sovereign wealth funds put $14.2 billion into mainland China and Hong Kong by September. The determine comes from Global SWF information shared with CNBC.

That complete was almost triple the $4.9 billion these funds invested in all of 2025. Saudi Arabia’s Public Investment Fund led with $6 billion. Together, 4 Gulf funds made up almost 70% of the inflows.

The offers included a minority stake in Luckin Coffee and Alibaba’s $10.2 billion share sale. Andrew Wang, who leads client investments in Mubadala’s personal fairness arm, pointed to the market’s valuations.

“Valuations are decrease than they’ve been in years. I feel this might be a very good classic for traders in China,” he stated.

Still, China stays a small vacation spot for sovereign capital. The US attracted $132.4 billion in sovereign funding over the identical 9 months, in line with Global SWF. Europe and the UK drew $44.6 billion.

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