HONG KONG: China’s blue-chip index fell to the lowest level in 14 months on Wenesday despite a broader recovery in Asian shares, as weaker profit growth in index heavyweight CATL and fading hopes of major stimulus to boost spending weighed on sentiment.
By the close, China’s blue-chip CSI300 Index was down 1 percent, its lowest since August 2025, while the Shanghai Composite Index lost 0.6 percent.
Hong Kong’s benchmark Hang Seng was down 0.9 percent.
The Hang Seng Tech slid to the weakest level since September 2024, when China introduced massive stimulus to prop up the market.
Shares of CATL tumbled more than 10 percent in both Hong Kong and mainland markets after the top Chinese battery maker posted much slower profit growth in the third quarter, hit by fierce competition and a slowdown in domestic auto sales.
The weak performance of toymaker Pop Mart added to risk aversion. Its shares dropped 5 percent on Wednesday and have lost 15 percent this month as investors expect its third-quarter earnings to disappoint.
Market participants said investors are expressing their bearish view on China’s weak domestic demand by selling consumer stocks ahead of quarterly earnings.
Investors believe policymakers are unlikely to roll out market stimulus measures soon given economic growth remains robust.
Export-led industrial strength continues to mask weak domestic demand, Barclays said in a note.
“With the growth target largely secured, we see a higher bar for large-scale stimulus,” the bank said.
Liquor and new energy firms led the decline, while pharmaceutical, telecommunications and cloud-computing companies outperformed.
“Rather than seeking to boost near-term growth, the government’s focus remains on technological advancement, industrial upgrading and greater self-sufficiency,” Sophie Altermatt, an economist at Julius Baer, said in a note.
In the near term, more restrictive taxation policies have also put pressure on stocks, market participants said.