CSI 300 Index Slides 1.6%, Cracks 4,000 Level Amid State Buying

CSI 300 Index slid 1.6% on Friday, its steepest decline since the 20% plunge on Thursday that pushed it into a bear market. The index is now 4,000 points lower than the June high, marking a weekly loss near 5%, the steepest in three months.

State‑backed exchange‑traded funds attracted a net inflow of 46 billion yuan on Thursday, the largest such inflow since the Liberation‑Day‑spurred rout in April 2025, according to Bloomberg‑compiled data. Despite the capital inflow, the index lurches on valuation concerns.

Jade Fu, head of global multi‑asset portfolio management for APAC at UBS Asset Management, said on Bloomberg TV that "cheapness alone is not the catalyst" and that growth, investor behaviour and momentum are "quietly challenging" right now.

In Hong Kong, the China technology gauge sits 2.5% shy of erasing the gains made since Beijing launched its stimulus blitz in September 2024.

Analysts warn that unless policy signals improve and valuations adjust, the CSI 300 may face further consolidation ahead of the upcoming earnings season, with a cautious stance on risk‑seeking.