China enters bear market as Asian stocks fall and bitcoin retreats

China's CSI 300 falls into a bear market

Asian stocks fell sharply on Thursday, with China's CSI 300 entering a bear market. A bear market means a drop of 20% or more from a recent peak. The index, which tracks the 300 largest stocks in Shanghai and Shenzhen, slid 2% on the day and is now down 20% from its June peak.

Other regional benchmarks also fell. Japan's Nikkei 225 was down around 3%, South Korea's Kospi down 3.5%, Taiwan's benchmark down 2%, and Hong Kong's Hang Seng down 3%. Chinese technology shares traded in Hong Kong saw their worst session since April 2025, according to Bloomberg's David Ingles.

Key numbers

• CSI 300: Down 20% from June peak.
• Bitcoin (BTC): Gave up its advance above $84,000 and retreated toward $82,000.
• Brent crude: Climbed above $112 a barrel, its highest level since May.
• WTI crude: Topped $100 a barrel.
• Cboe Volatility Index (VIX): Jumped 10% to around 18.

What added to the pressure

Rising oil prices added to investor concerns. Mixed third-quarter earnings reports from U.S. companies also weighed on sentiment. Tesla cut its capital-spending forecast, while Meta raised the lower end of its spending guidance.

According to the reported figures, Chinese technology shares in Hong Kong have fallen more than 40% from their peak, almost erasing gains after Beijing's September 24 stimulus package. Forward valuations for that technology benchmark were reported at around 13 times earnings.

Risk assets moved lower

Bitcoin, a digital asset that can often move with broader risk appetite, gave up its move above $84,000 and moved toward $82,000. Gold fell more than 1% to below $4,100 an ounce, while silver dropped over 3.5% to around $55. Nasdaq 100 futures declined almost 2%.

Treasury yields eased slightly, with the U.S. 10-year yield near 5.077%, below its recent peak around 5.4%. However, that did not stop the selloff.

Sources

• CoinDesk

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