China's CSI 300 Index Falls 20% From June Peak as Investor Optimism Fades

China's CSI 300 Index has fallen 20% from its June peak, entering a technical bear market as investor optimism around artificial intelligence, government support, and economic recovery fades. The sell-off has spread to Hong Kong-listed Chinese companies, with major stock gauges dropping as much as 2.9%. Investors are reassessing AI stock valuations and questioning domestic demand strength, while expectations for substantial new stimulus packages have weakened. Weak household consumption and concerns about corporate earnings growth are adding pressure. Contemporary Amperex Technology reported slower-than-expected profit growth, with shares falling 12%. Analysts note lower valuations don't automatically signal a buying opportunity without sustainable earnings and improved business fundamentals.