China’s stock market has been weakening recently. On October 22, the A-share market experienced a significant decline with major indices collectively falling. The Shanghai Composite Index fell below 3700 points, and the ChiNext Index dropped below 2600 points, with nearly 5000 individual stocks declining. Both indices hit new lows since August 2025, highlighting a general market downturn and putting pressure on investor sentiment.
In the early trading session on October 22, the Shanghai and Shenzhen markets saw unilateral declines, with the Shanghai Composite Index falling below the key 3700-point mark. In the afternoon, the markets continued to decline before seeing some bottom-fishing funds, which narrowed the losses of the three major indices, but the decline expanded again towards the closing time.
At the close, the Shanghai Composite Index fell by 1.48% to 3658.03 points, the Shenzhen Component Index dropped by 2.96%, the ChiNext Index tumbled by 4.37%, the SSE 50 Index decreased by 2.78%, and the CSI 500 Index went down by 0.93%.
Of note, both the Shanghai Composite Index and the ChiNext Index closed below key support levels of 3700 points and 2600 points respectively, hitting new lows since August 2025. The Shanghai Composite Index intraday low reached 3649.87 points, falling below the previous high of 3674.40 points in October 2024. The ChiNext Index saw a more pronounced retreat, indicating significant pressure on some high-valuation growth stocks.
Among the listed stocks, 535 rose while 4999 fell, with 43 remaining unchanged. According to data from “Great Wisdom VIP,” 39 stocks rose by over 9%, and 126 stocks fell by over 9%.
The total turnover for the day reached 1.5287 trillion yuan, increasing by 99.3 billion yuan compared to the previous trading day.
In terms of sector performance, most industry sectors experienced declines, including entertainment, broadcasting, advertising, e-commerce, publishing, electronics, education, environmental monitoring, digital media, gaming, fisheries, and forestry.
Conversely, the concept sectors generally showed gains, including dispersed dyes, short-game entertainment, AI marketing, data rights authenticity, cloud gaming, online gaming, intellectual property, paid knowledge, agriculture, CPO concepts, and optical communications.
According to Bloomberg, with diminishing expectations for large-scale stimulus measures, flat corporate earnings, and ongoing concerns about global artificial intelligence trading, investor sentiment is under pressure, potentially leading the Chinese stock market into a technical bear market.
East Sea Securities noted that the Shanghai Composite Index lacked the strength to recover above the gap resistance level, oscillating downward. The weekly trend has entered oversold territory, which could lead to a rebound, but there is currently no technical support for a short-term rebound, indicating a continued period of oscillation.
The institution pointed out that the nearest support levels are around the 555-day moving average at 3622 points and the 120-week moving average near 3612 points. While there may be buying pressure near these support levels, stabilizing is challenging amid a downward daily trend. Caution is advised in the ongoing fluctuations.
On October 22, the significant drop in A-shares sparked widespread discussion among investors and financial bloggers, with several related topics trending on Weibo.
Financial blogger “Fire to Support Family” expressed frustration, highlighting the volatile situation in the market and the consecutive declines of various stocks, reflecting a challenging trading environment.
Financial blogger “Strong Records from 1 to 1000” pointed out the continuous search for new lows in A-shares, noting the eleven-week decline of the Shanghai and Shenzhen 300, setting a historical record since establishment.
Financial blogger “Fishing for Investment Wisdom” stated concerns about the diminishing effectiveness of bottom-fishing tactics, impacting market confidence negatively.
Financial blogger “Ye Ai Mao” reiterated his stance on the market, emphasizing a localized trading environment rather than a bull market.
Independent commentator “Old Xu’s Market Commentary” analyzed the day’s index performance, noting a new low for the year and a shift from a slow bull market to a volatile bear market. He mentioned specific tech stocks experiencing significant sell-offs, contributing to the day’s steep decline.
As the market continues to face challenges, investors and analysts are closely monitoring developments to navigate the evolving landscape of the Chinese stock market.