China’s mainland-listed shares are on track to enter a technical bear market as waning hopes for substantial stimulus, lackluster earnings and lingering jitters over the global artificial intelligence trade weigh on sentiment.
The CSI 300 Index fell as much as 1.6% on Thursday, bringing its total losses from a high in June to around 20%. A gauge of major Chinese companies listed in Hong Kong dropped as much as 2.9%.
Local shares have been in a slump since late June, first succumbing to a global selloff in AI-linked names before languishing further on new evidence of a protracted consumption slump. Still, China’s growth beat in the third quarter kept expansion within the government’s annual target, giving policymakers room to stick with targeted and incremental stimulus.
Soft results from some companies in the current earnings season also kept investors cautious. Contemporary Amperex Technology Co. Ltd. reported slower-than-expected quarterly profit growth as policy support wound down, sending its shares down 12% on Wednesday.
Authorities have moved to curb selling pressure and stabilize its equity market, though analysts said state-backed buying alone may not be enough to enable a sustained recovery.