China stocks slide as blue chips head for longest weekly losing streak

By Reuters News18 hours ago Updated

SHANGHAI, Oct 23 (Reuters) - China stocks fell on Friday, with the CSI300 index headed for its longest-ever weekly losing run, as a selloff in Wall Street tech shares and a lack of domestic fiscal stimulus weighed on investor sentiment.

** At the midday break, the benchmark Shanghai composite index .SSEC fell 1.2%, while the blue-chip CSI300 index .CSI300 lost 0.5%.

** Both indexes added to losses from the previous session when the CSI300 posted its lowest close since July 2025, and Shanghai benchmark ended at its weakest level in more than a year.

** If the CSI300 index holds onto the losses, it would post its 11th consecutive weekly drop, the longest losing streak on record since the index was created in 2005.

** The index is now down more than 20% from its most recent closing peak on June 22, meeting some definitions for confirmation of a "bear market". By the most widely accepted definition, it has been in one since a 2007 closing-level high.

** The smaller Shenzhen index .SZSC lost 2.2%, the start-up board ChiNext Composite index .CNT fell 2.1% and Shanghai's tech-focused STAR50 index .STAR50 tumbled 3.1%.

** Nasdaq posted its steepest daily drop since early June on Thursday as a batch of high-profile earnings reports ignited fresh fears about the AI spending race. .N

** Market sentiment has also been hurt by disappointment over Beijing's piecemeal stimulus for a two-speed economy that is booming for exports but sputtering at home.

** "The slump stems from insufficient fiscal stimulus and disappointing earnings, in our view, as policymakers have opted for incremental measures rather than the substantial packages seen in 2024," analysts at RBC Wealth Management said in a note.

** "Without new policy or technology catalysts, volatile trading may persist into early 2027, while state-backed stabilisation measures may be insufficient to sustain a recovery."

** Losses were pared after trading volumes in several exchange-traded funds popular with the "National Team" of state-backed investors spiked on Friday morning, fuelling speculation of official support for the market. 510300.SS, 510310.SS, 510330.SS, 510050.SS

** Hong Kong's benchmark Hang Seng index .HSI gained 0.6% in morning deals.