China's CSI 300 Index Enters Bear Market Amid Fading Stimulus Hopes and AI Trade Worries

China's benchmark CSI 300 index entered a bear market on Thursday after 10 straight weeks of decline, standing at 4,060.19, which is about 20% below its June peak and 13.94% down from its January 1 level. This decline was linked to fading stimulus hopes, weak earnings, and concerns over the global artificial intelligence (AI) trade. The pressure spread across Asia, with South Korea's KOSPI, Japan's Nikkei 225, and Taiwan's TAIEX also falling. Despite state-backed buying efforts by Central Huijin, which has reinvested only about $43 billion since July, analysts warn that state buying alone may not ensure a lasting recovery. In contrast, sovereign wealth funds invested $14.2 billion into mainland China and Hong Kong through September.