CSI 300 Falls 20% from June High as A-Shares Edge Closer to a Bear Market
The CSI 300 Index fell as much as 1.7% on Thursday, down 20% from its June peak, while the ChiNext Index declined for the 16th consecutive trading day. Optical module firms Eoptolink and Zhongji Innolight were among the top decliners, and the Hang Seng Tech Index plunged over 4.5%. The drop was driven by a lack of substantial fiscal stimulus and disappointing earnings.
CSI 300 Falls 20% from June High as A-Shares Nears Bear Market
The CSI 300 Index fell as much as 1.7% on Thursday, marking a cumulative decline of 20% from its June high. Meanwhile, the ChiNext Index has fallen for 16 consecutive trading days, pushing A-shares on the brink of a bear market. Optical module companies Eoptolink and Zhongji Innolight were among the top decliners, while the Hang Seng TECH Index plunged by over 4.5%.
The decline stems from a lack of substantial fiscal stimulus and disappointing earnings: CATL's quarterly profit growth fell short of expectations, causing its stock price to plummet 12% on Wednesday. Strategists say that without new policies or technological catalysts, this volatile market trend could persist until early 2027.
