China's CSI 300 enters bear market after 20% drop from June peak

China's CSI 300 index has entered bear-market territory, falling 20% from its June peak amid a 10-week rout in mainland equities. The index is down 2.6% this week, reflecting sustained pressure on Chinese stocks. The decline underscores structural challenges, including excess capacity and overinvestment, as companies face intense competition and eroding margins. Industrial profit growth hit its weakest point this year in September, with the economy posting its slowest growth in over three years in Q2. Pella Funds' Jordan Cvetanovski notes China struggles with past overbuilding, though select opportunities remain in sectors like batteries. The slowdown is driven by a multiyear property downturn and weak consumer demand.