The notable shift in this round is that the narrative variable has yielded to the profit variable. Once actual earnings figures are revised down, rebounds supported only by liquidity lose their foundation, and with policy backstop expectations also receding, price has little cushion left.
China’s benchmark CSI 300 has fallen about 20 percent from its June peak, formally entering bear-market territory after ten consecutive weeks of declines. The Financial Times, Bloomberg and other outlets attribute the move to two main lines: a marked cooling in the artificial intelligence trade that had supported the market, and stabilisation expectations that failed to redirect capital flows. Asian equities weakened together, as regional technology sentiment and geopolitical tension combined to depress risk appetite.