- China‘s CSI 300 index recorded its 10th consecutive weekly decline, losing 3.4% last week in the longest losing streak since the index’s creation in 2005.
- The AI-heavy STAR 50 index has plummeted 40% since June 30, making it the worst-performing major tech index globally.
- Foreign investors pulled over $13 billion from mainland stocks in Q3, erasing more than half of spring quarter inflows.
China’s CSI 300 index has suffered its 10th consecutive weekly decline, dropping 3.4% last week in what data shows is the longest losing streak since the index’s creation in 2005.
Chipmakers and AI companies that powered Beijing’s spring rally are now leading the sell-off. The STAR 50 index, where five AI companies account for more than 30% of its weight, has lost 40% of its value since June 30, according to data.
The streak has now surpassed the previous record of consecutive weekly losses set in January 2012, data shows. From their peak values this year, the Shanghai Composite, Shenzhen Component, and CSI 300 have shed 12%, 28%, and 17%, respectively.
An index of exclusively AI stocks has declined 35% since its peak this year, according to data. Meanwhile, China’s CSI All Share Semiconductors index has drawn down 45%, data shows.
Bloomberg reported that no other major tech index in the world has fared worse than the STAR 50 since July 1. Foreign investors withdrew over $13 billion from mainland stocks via Hong Kong in the third quarter, according to reports.
That outflow reversed more than half of the inflows those equities enjoyed during the spring quarter. The CSI 300 index is currently trading 30% below its February 2021 high.
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