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Asian Stocks Slide as China's CSI 300 Enters Bear Market

China's CSI 300 fell into a bear market on Oct. 22, 2026, down 20% from its June peak, as Asian stocks sold off on AI spending worries and higher oil prices.

Oct 22, 2026 - 07:18

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China's benchmark CSI 300 index entered bear-market territory on Thursday, October 22, 2026, having fallen 20% from its June peak, as a broad sell-off swept through Asian equity markets. Technology shares led the declines after mixed quarterly results from large U.S. companies revived concerns about the cost of artificial intelligence investment, while a further rise in crude oil prices weighed on risk appetite, CNBC and Sharecast reported.

A ten-week slide in mainland shares

The CSI 300 tracks 300 of the largest companies listed in Shanghai and Shenzhen. According to LSEG data cited by CNBC, the index has declined for ten consecutive weeks, was down 2.6% so far this week and was trading more than 1% lower on Thursday. Sharecast put the index down 1.84% at 4,036.30 as of 10:30 a.m. London time, while the Shanghai Composite closed 1.5% lower at 3,658.03, according to AFP.

A bear market is commonly defined as a decline of 20% or more from a recent high. CNBC reported that Chinese companies have faced slowing profit growth amid intense price competition that has eroded margins, and that the country posted its weakest growth in industrial profits of the year in September. The economy also recorded its slowest growth in more than three years in the second quarter, pressured by a multiyear property slowdown and weak consumer demand.

The structure of the market may add to volatility. CNBC cited HSBC data showing that retail investors drive about 90% of daily trading in China, compared with roughly 20% to 25% of volumes on the New York Stock Exchange. Shaun Rein, managing director at China Market Research Group, told the network that individual investors tend to exit faster during periods of uncertainty.

Losses across the region

The declines were not limited to China. As of 10:30 a.m. London time, Japan's Nikkei 225 was down 2.65% and the broader Topix had lost 1.14% to 3,997.50, Sharecast reported. South Korea's Kospi fell 3.52% to 5,533.77 and the smaller Kosdaq dropped 3.62% to 764.10. Australia's ASX 200 slipped 0.43% to 8,793.20, and Singapore's Straits Times Index eased 0.57% to 5,406.89.

Hong Kong's Hang Seng Index closed 3.0% lower at 22,934.68, according to AFP, with NetEase and Tencent among the hardest-hit stocks. AFP said Chinese e-commerce groups Alibaba and JD.com were also weighed down by government calls for tighter quality standards. In Seoul, chipmakers SK hynix and Samsung Electronics fell 5.5% and 4% respectively, while Japan's Kioxia and Tokyo Electron were down as much as 7%, the agency reported.

Earnings and oil weigh on sentiment

The regional sell-off followed results released after the U.S. close on Wednesday. Tesla reported lower quarterly profit and cut its capital spending forecast for the year, while Meta Platforms narrowed its 2026 spending outlook to a higher range and announced a new class of non-voting shares, AFP reported. Sharecast said Meta's share plan revived worries over escalating capital commitments in the technology sector.

"Investors will reward growth and monetisation, yet they're also becoming more sensitive to how the next leg of investment is financed and what it means for existing shareholders," Chris Weston, head of research at Pepperstone, said, according to AFP.

Energy markets added pressure. Brent crude was up 2.63% at $111.68 a barrel during the Asian session after further Houthi attacks in Saudi Arabia raised the risk of wider supply disruptions in the Middle East, Sharecast reported. AFP later quoted Brent up 2.7% at $111.75. European markets also opened lower; at midday, France's CAC 40 was down 1.3%, Germany's DAX 0.9% and London's FTSE 100 0.4%, according to AFP.

Central banks and corporate news

In regional economic news, the Bank of Korea held its base rate at 3.00%, pausing after two consecutive increases, and raised its 2026 growth forecast to 3.3% from 2.6%, citing strong semiconductor exports, Sharecast reported. South Korean consumer inflation eased to 2.9% in September, while producer prices rose 7.7%. New Zealand's annual inflation slowed to 3.7% in the third quarter, below expectations but still above the Reserve Bank of New Zealand's 1% to 3% target range.

Separately, court-appointed liquidators of China Evergrande said they had recovered HK$3.4 billion as of September 30, less than 1% of the roughly $46 billion in claims tied to the property developer's collapse, according to Sharecast.