Chinese stocks extended their slide in the final hour of trading as investors disappointed by a lack of national team buying dumped shares. Key indexes were trading with only modest losses during the morning, but things turned for the worse in the afternoon, with the Star 50 Index tumbling near 5% and the CSI 300 benchmark gauge falling 1.3%. The declines stood out as trading sentiment across most of Asia was buoyant with the AI trade revived by Anthropic PBC’s filing for an initial public offering.
Yu Yingdong, general manager of Shenzhen Cowin Asset Management Ltd., said the national team didn’t enter the market as aggressively as in previous sessions, leading to the selling pressure. “There is no buying power except national team now as sentiment is weak,” he added. Chinese stocks tumbled into a bear market last week as a protracted slump in consumption and doubts over the profitability of artificial intelligence crushed confidence. Tuesday’s muted buying by the national team — with key exchange-traded funds seeing turnover below Monday’s — came after state investors acted with force last week, when inflows into nine ETFs known to be actively traded by them reached 128.7 billion yuan ($19 billion), according to data compiled by Bloomberg.
That was the most since April 2025.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing