Chinese stocks have erased $2.4 trillion in market value since their peak in May, according to data compiled by Bloomberg, as the CSI 300 Index entered bear-market territory.
The benchmark closed 1.8% lower on Thursday, October 22, bringing its decline from a June high to roughly 20%. That move marked the end of a 10-week losing streak, the longest since the index was created.
Investors have grown increasingly concerned about the returns on heavy artificial intelligence spending. Weak consumer demand and doubts that Beijing will deliver a large new stimulus package have compounded the pressure.
The sell-off has hit technology and semiconductor shares particularly hard. Gauges tracking major Chinese companies and tech firms in Hong Kong also fell sharply during the multi-month decline. The Hang Seng Tech Index posted one of its steepest sessions in months on the day the CSI 300 crossed the 20% threshold.
The losses reverse much of the gains that followed late-2024 stimulus measures and a subsequent wave of optimism around Chinese AI developments. Earlier enthusiasm for the sector has given way to questions about whether the large capital outlays will produce sufficient profits.
Official data have underscored the domestic challenges. September retail sales rose just 1.1% from a year earlier, reflecting the prolonged softness in household spending. Third-quarter GDP growth of 4.5% kept the annual target within reach but did little to restore confidence among equity investors.
State-backed funds have sought to stabilize the market. Central Huijin and related entities have directed inflows into exchange-traded funds tracking major indexes, with elevated trading volumes on key CSI 300 ETFs pointing to intervention. Analysts at Bloomberg Intelligence have noted that additional buying may be required for any sustained recovery.
On Friday the CSI 300 rebounded more than 1.5%, recovering some ground after the prior day’s close, as ETF turnover surged again. Still, the index remains deep in negative territory for the year, ranking among the weaker major equity benchmarks globally.
The $2.4 trillion figure refers to the aggregate decline in mainland share-market value from the May peak. Separate measures for the CSI 300 track the drop from its June high. Hong Kong-listed Chinese shares have mirrored the weakness, with several major indexes also posting double-digit losses this year.
Market participants continue to watch for clearer signals on policy support and any evidence that AI-related investments are translating into stronger corporate earnings. For now, the combination of soft domestic demand and valuation concerns has left Chinese equities among the world’s poorest performers in recent months.
