China's blue-chip index hits 14-month low as CATL tumbles, stimulus hopes fade

By Reuters News09:30 (UTC), 21 October 2026 Updated

By Summer Zhen

HONG KONG, Oct 21 (Reuters) - China's blue-chip index fell to the lowest level in 14 months on Wenesday despite a broader recovery in Asian shares, as weaker profit growth in index heavyweight CATL and fading hopes of major stimulus to boost spending weighed on sentiment.

** By the close, China's blue-chip CSI300 Index .CSI300 was down 1%, its lowest since August 2025, while the Shanghai Composite Index .SSEC lost 0.6%.

** Hong Kong's benchmark Hang Seng .HSI was down 0.9%.

** The Hang Seng Tech .HSTECH slid to the weakest level since September 2024, when China introduced massive stimulus to prop up the market.

** Shares of CATL 300750.SZ tumbled more than 10% in both Hong Kong and mainland markets after the top Chinese battery maker posted much slower profit growth in the third quarter, hit by fierce competition and a slowdown in domestic auto sales.

** The weak performance of toymaker Pop Mart 9992.HK added to risk aversion. Its shares dropped 5% on Wednesday and have lost 15% this month as investors expect its third-quarter earnings to disappoint.

** Market participants said investors are expressing their bearish view on China's weak domestic demand by selling consumer stocks ahead of quarterly earnings.

** Investors believe policymakers are unlikely to roll out market stimulus measures soon given economic growth remains robust.

** Export-led industrial strength continues to mask weak domestic demand, Barclays said in a note.

** "With the growth target largely secured, we see a higher bar for large-scale stimulus," the bank said.

** Liquor and new energy firms led the decline, while pharmaceutical, telecommunications and cloud-computing companies outperformed.

** "Rather than seeking to boost near-term growth, the government's focus remains on technological advancement, industrial upgrading and greater self-sufficiency," Sophie Altermatt, an economist at Julius Baer, said in a note.

** In the near term, more restrictive taxation policies have also put pressure on stocks, market participants said.

** Beijing set an October 22 deadline for wealthy individuals to declare and pay offshore trust income, prompting some to offload stocks to collect cash, Reuters reported earlier.

** The smaller Shenzhen index .SZSC was down 0.49%, the start-up board ChiNext Composite index .CNT slid 1.62% and Shanghai's tech-focused STAR50 index .STAR50 inched up 0.06%.