China’s CSI 300 enters bear market after 20% fall from June peak

CSI 300 index data showed that China’s benchmark entered technical bear-market territory on Thursday after falling 20% from its June peak. The index tracks the 300 largest stocks listed on the Shanghai and Shenzhen exchanges. It fell more than 1% on Thursday after declining for 10 consecutive weeks.

CSI 300 enters technical bear territory after 20% fall

CSI 300 index data placed the index in technical bear-market territory after its fall from the June peak reached 20%. The index covers the 300 largest stocks listed on China’s Shanghai and Shenzhen exchanges.

The index fell more than 1% on Thursday, according to the CSI 300 index data. Its decline had extended across 10 consecutive weeks, with the index losing nearly 3% during that week.

October 22 tax deadline adds to pressure on mainland-listed shares

Reuters reported that Beijing set October 22 as the deadline for wealthy individuals to declare and pay offshore trust income. The agency said the deadline may have prompted some investors to sell shares to raise cash.

Market participants cited by Reuters said more restrictive taxation policies had put near-term pressure on stocks.

Slow growth, policy priorities and retail volatility concerns

China’s second-quarter economic data showed the country had recorded its slowest growth in more than three years. The same data linked the weakness to a multiyear slowdown in the property sector and extended weakness in consumer demand.

Sophie Altermatt, an economist at Julius Baer, said the government’s focus remained on technological advancement, industrial upgrading and greater self-sufficiency rather than near-term growth.

Shaun Rein, managing director of China Market Research Group, said geopolitical uncertainty, concerns over an artificial-intelligence bubble and deteriorating consumer confidence were weighing on investor sentiment. Rein said China’s large base of retail investors could exacerbate market volatility.