China’s CSI 300 enters bear market as weak profits deepen sell-off
FXI•China’s CSI 300 fell 20% from its June peak, entering bear-market territory after 10 consecutive weeks of losses. The index was down 2.6% so far this week as weak corporate profitability and investor pessimism weighed on shares.
1. Stocks extend losses
The CSI 300 entered bear-market territory, falling 20% from its June peak and declining for 10 consecutive weeks. Industrial overcapacity and weak domestic demand have intensified price competition and squeezed corporate margins; Shaun Rein expects further selling but forecasts a strong rebound in Chinese equities in 2027.
