Key facts
- State-owned investment funds intervened in China's stock market on Friday.
- The CSI 300 Index entered a bear market after falling 20% from its June high.
- ETFs favored by China's national team saw net inflows of 46 billion yuan ($6.89 billion) on Thursday.
China's state-owned investment funds intervened in the stock market on Friday, analysts said, as shares slid into bear territory. Investors are increasingly questioning whether the country's artificial intelligence sector can justify lofty valuations and offset broader economic troubles. The onshore benchmark CSI 300 Index fell as much as 1.6% on Friday, taking the week’s losses to nearly 5%, the most in three months. The gauge dropped 20% from its June high on Thursday, entering a bear market. Exchange-traded funds favored by China’s so-called national team saw net inflows of 46 billion yuan ($6.89 billion) on Thursday, the most since the Liberation Day-spurred rout in April 2025, according to Bloomberg-compiled data.