A roughly 20% decline from its June peak pushed China’s CSI 300 into bear-market territory Thursday, highlighting the gap between faster GDP growth and persistently weak consumer and property indicators.
The index fell as much as 1.6% Thursday, Bloomberg reported. CNBC said it had declined for 10 consecutive weeks, citing LSEG data. The overall retreat accumulated over several months, rather than in a single session.
The CSI 300’s 300 constituent securities come from Shanghai and Shenzhen, according to China Securities Index Company. Bloomberg attributed pressure on mainland shares partly to concerns about the global AI trade, weak earnings and waning hopes for major stimulus.
The National Bureau of Statistics (NBS) said gross domestic product grew 4.5% year over year in the third quarter, up from 4.3% in the second. Growth was 4.6% across the first three quarters. Retail sales totaled 4,243.3 billion yuan in September and 37,000.1 billion yuan from January through September; both measures rose 1.1% year over year. The bureau said insufficient domestic demand remained prominent and reported that real-estate development investment fell 20.6% in the first three quarters.
Economist Dave Chia of Moody’s Analytics told the Associated Press, “Domestic demand was weak, while trade grew strongly.” Mao Shengyong, deputy head of the NBS, also told the Associated Press that the international environment was “complex and volatile.”
Contemporary Amperex Technology Co., Limited (CATL) reported third-quarter revenue of 165.221 billion yuan, up 58.58% from a year earlier. Net profit attributable to shareholders rose 14.54% to 21.246 billion yuan. Reuters reported the profit increase fell short of analysts’ 41.2% estimate, based on LSEG SmartEstimate data.
The National Development and Reform Commission (NDRC) said on Oct. 20 that authorities would strengthen measures to boost consumption through policies aimed directly at consumers and support for purchases of new-energy vehicles and smart products.
