The persistence of the decline comes despite the heaviest buying by state-led funds since April 2025, including 128.7 billion yuan ($19 billion) in inflows into nine known state-favored ETFs last week alone. Since May, the domestic equity market has lost an estimated $3.5 trillion in value as deteriorating corporate earnings and a slump in consumption weigh on sentiment. While officials have encouraged insurers and state funds to buy shares, the efforts have struggled to counter pressures from a bursting property bubble and waning confidence in the profitability of domestic AI companies.
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Chinese Equities Fall Deeper Into Bear Market As State Support Fails To Halt Rout
Global Markets2 hours ago
Mainland shares continued to decline in the final hour of recent trading as investors dumped equities, expressing doubt that state intervention would be sufficient to halt a broader rout. The selloff pushed China's benchmark CSI 300 index further into technical bear territory, where it has remained after dropping 20% from its June peak. This latest slump extends a record losing streak for the benchmark, which has now traded in the red for 11 consecutive weeks.
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