{
  "id": 16414534,
  "title": "Chinese equities face prolonged downturn as earnings forecasts tumble",
  "url": "https://urgent.news/2026/10/25/chinese-equities-face-prolonged-downturn-as-earnings-forecasts-tumble",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-25T01:37:10.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/chinese-equities-face-prolonged-downturn-as-earnings-forecasts-tumble-4971016"
  },
  "original_language": "en",
  "account": "Chinese equities are bracing for an extended downturn as profit forecasts have plummeted, threatening further losses in the country's equity market. Since May, Chinese stocks have lost $3.5 trillion, pushing the CSI 300 Index into a bear market last week and putting Hong Kong technology shares at risk of erasing gains made since Beijing's major stimulus package two years ago. Factors contributing to the weakened earnings include weak consumer spending, intense corporate competition, and shrinking profit margins across sectors such as banking, electric vehicles, and artificial intelligence.\n\nConsensus earnings estimates for the MSCI China Index have slipped over 4% since March, while profit forecasts for the Hang Seng Tech Index have dropped over 13% in the same period. Companies reporting third-quarter results have missed earnings expectations by an average of 9%, signaling that the index is on track for its second-worst quarterly performance against forecasts in two years. This downward trend has been exacerbated by poor financial results from key firms such as CATL, China Mobile, and Ganfeng Lithium, which have all fallen short of earnings expectations amid falling commodity prices.\n\nAlibaba, in a bid to bolster its artificial intelligence investments, has sought additional funding through a $10 billion share offering, diluting existing shareholders in the process. Investor confidence has further eroded, with mainland trading volumes plummeting to their lowest levels since July 2025 and margin financing hitting a one-year low. Despite these challenges, Chinese authorities have deployed state-backed investment funds to stabilize equities, though investors remain skeptical about the prospect of substantial economic stimulus. While China's economy expanded 4.5% year-on-year in the third quarter, staying within the government's annual target range of 4.5% to 5%, some institutional investors remain cautiously optimistic, arguing that valuations remain reasonable and lower bond yields could encourage equity investment.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}