CSI300 falls more than 20% from June 22 closing peak as mainland China stocks extend losses
Anupama VM
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Last Updated: 23rd October 2026 - 02:28 pm
China’s CSI300 has fallen more than 20% from its June 22 closing peak, meeting some definitions of a bear market, as mainland equities extended losses on Friday. Hong Kong’s Hang Seng Index was little changed in early trading, unlike the declines in mainland Chinese equities, Reuters reported.
CSI300’s 20% decline follows closing lows for two mainland indexes
The CSI300 reached its lowest closing level since July 2025 in the session before Friday’s trading, Reuters reported.
The Shanghai Composite also ended that session at its weakest level in more than a year, carrying losses into Friday’s session, Reuters reported. The CSI300’s fall from its June 22 closing peak met some definitions of a bear market.
Under a more widely accepted definition, the index has remained in bear-market territory since its closing-level peak in 2007, Reuters reported.
Shanghai Composite and CSI300 fall in early Friday trading
The Shanghai Composite fell 0.9% in early trading on Friday, Reuters reported. The blue-chip CSI300 declined 1.1% during the same period.
Both mainland indexes extended losses from the previous session, Reuters reported. Hong Kong’s Hang Seng Index was little changed in early Friday trading, unlike the sharper declines in mainland Chinese equities.
AI-linked technology weakness, Middle East tensions and French debt concerns
Investors retreated from riskier assets as artificial intelligence-related technology stocks weakened, tensions in the Middle East escalated and concerns over French sovereign debt markets grew, Reuters reported.
The technology-led selloff on Wall Street added to concerns about stretched valuations in artificial intelligence-linked stocks, Reuters reported. UOB analysts said these factors had triggered a shift towards safer assets across global markets.
Deadly attacks on Saudi Aramco infrastructure heightened geopolitical uncertainty, Reuters reported.
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