China stocks lose $3.5 trillion as profit slump deepens bear market
Why it matters: weaker earnings and no major new stimulus are worsening investor fears about China’s growth outlook.
Chinese stocks have shed about $3.5 trillion in market value since a May peak, as weak corporate earnings and the lack of major fresh stimulus deepened the sell-off. The CSI 300 has fallen into a bear market, while Hong Kong’s Hang Seng Tech Index is close to wiping out gains made after Beijing’s broad support measures two years ago. Early third-quarter results have reinforced the gloom: CATL missed profit expectations, and Bloomberg data showed earnings forecasts for MSCI China members have fallen more than 4% since late March. Profit estimates for Hang Seng Tech companies have dropped more than 13%, hit by weak consumption, price wars and margin pressure across industries from electric vehicles to AI.