China's CSI300 enters bear market as AI stocks slide

China's CSI300 Index fell 1.8% to a 15-month low on Thursday, confirming a bear market as AI stocks slumped on concerns over unsustainable growth and valuations. The index closed at 4,036.30, now 20.2% below its June 22 peak. The Shanghai Composite Index dropped 1.5%, also hitting a one-year low, while the CSI Semiconductor Index lost 3.6% and the CSI AI Index fell 3.3%. Tepid stimulus expectations and a lack of fresh catalysts triggered broad selling, with only consumer staples and utilities gaining. State investment funds have been hesitant to intervene. In Hong Kong, the Hang Seng Index slipped 3% to a four-month low, pressured by Beijing's tax campaign on offshore trusts. Tencent slumped 2.9% and Alibaba dived over 6%, with some founders selling assets to pay tax liabilities. Analysts suggest the panic selling may be nearing its end.