China Stock Market Crash Wipes Out ₹329 Lakh Crore, CSI 300 Records Longest Weekly Losing Streak Since 2005

China's stock market experienced a severe downturn, with the CSI 300 index recording its longest losing streak since 2005, after 12 consecutive weekly declines on October 30. This devastating sell-off wiped out approximately Rs 329 lakh crore from market value since May's peak. The CSI 300 tracks 300 major companies from Shanghai and Shenzhen exchanges, having already fallen for 11 weeks by October 23. The index has slipped more than 20% from its June high, entering bear market territory.

Weakening domestic demand is a primary factor behind the market crash. Despite strong manufacturing and export performance, Chinese consumers remain hesitant to spend. Price reductions and intense competition have forced companies to cut profit margins.

The Sensex opened 49 points higher as Nifty approached the 23,000 mark, with IT stocks surging over 1%. Banking, electric vehicles, and technology companies faced notable declines. Corporate earnings disappointments have further eroded investor confidence, with MSCI China Index companies missing market expectations by an average of 9% in Q3.

AI stocks saw heavy selling pressure as investors questioned the sustainability of their heavy spending on AI infrastructure. The STAR 50 index witnessed sharp declines, particularly in semiconductor and AI hardware companies. The stock market rally in India saw the Sensex jump 645 points, with Nifty nearing 22,900, but gains were tempered by concerns over US tech stocks and rising oil prices, as well as doubts about China's property market stimulus effectiveness. Despite China's economy expanding 4.5% year-on-year in Q3, market confidence remained unshaken.