CSI 300 fell 1.57%
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A-shares are currently in a downtrend. SSE Index(000001) fell 0.69% this week and hit a new one-year low. On the last trading day, turnover was 12.55% above the 50-day average, and prices traded below all short-, mid-, and long-term moving averages. CSI 300(000300) declined 1.57%, also marking a one-year low, with last-day turnover surging 25.13% above the 50-day average, indicating heavy selling pressure in heavyweight sectors. Growth segments remained under pressure: Shenzhen Index(399001) dropped 1.09%, and ChiNext(399006) fell 3.18%, both reaching one-year lows and retreating 28.71% and 38.73% from their one-year highs, respectively. Last-day turnover in ChiNext was 30.27% above its 50-day average, showing clear signs of panic selling. Weekly turnover of major indices was broadly flat versus the prior week, but the final-day high-volume decline suggests increasingly pessimistic sentiment.
Overseas markets diverged further. Nasdaq Composite(0NDQC) fell 0.50%, breaking below its 50-day moving average. It is 6.18% below its one-year high but still 4.07% above its 200-day moving average, suggesting the medium-term trend is not fully broken. S & P 500 Index(0S&P5) edged up 0.05% and showed relative resilience. Hang Seng Index(HSI) plunged 4.52% this week, traded below all moving averages, and is down 17.68% from its one-year high, reflecting a sharp decline in Hong Kong market risk appetite.
China’s total electricity consumption rose 1.2% YoY in September, down from the previous 1.7%, indicating marginal weakening in industrial momentum. Structurally, however, the economy still shows “new-and-better” characteristics: invoice data from the State Taxation Administration show that in the first three quarters, enterprise purchases of machinery and equipment rose 12.6% YoY; inter-provincial trade sales accounted for 41.4% of total sales; and sales of embodied-intelligence robots on key platforms rose 22.6%. China’s Innovation Index reached 185.5 in 2025, up 6.4% YoY, suggesting accumulating internal momentum for industrial upgrading. Regional growth remained uneven: Dalian +5.3%, Hebei +4.5%, Shaanxi +4.1%, Jiangxi +3.5%, and Hunan +2.8% in the first three quarters.
Policy support continued. The CPC Central Office and State Council Office issued a document to fully implement the “AI+” initiative, promoting AI empowerment across industries. The 15th Five-Year Plan for upgrading industrial foundational capabilities has also been released, including key foundational product breakthrough programs. The NDRC is drafting the 2026–2030 domestic demand expansion plan. The revised Administrative Measures for Outbound Investment further improve institutional safeguards for outbound investment development and security. Regarding concerns over an alleged “China AI ban,” Yuyuantantian clarified this is not a policy pivot but a routine export-control adjustment. Shanghai’s financial regulator introduced 17 measures to promote digital finance, while digital RMB upgrades continue, improving financial support efficiency for the real economy. External trade remained strong: Shanghai’s September exports hit a record high, ASEAN remained the largest trading partner, and Guotai Haitong argued that moderate RMB appreciation will not undermine export resilience, as industrial competitiveness is the key support. MOFCOM data show final consumption contributed 46.7% to growth in the first three quarters, and online goods/services retail contributed 45.4% to total retail growth.
Internationally, the U.S. labor market remained tight: initial jobless claims for the week ending Oct 17 fell to 194,000, below the 200,000 expectation and a recent low. EIA crude inventories declined by 3.06 million barrels—narrower than the previous 8.557 million draw, but still far above the expected 0.82 million—indicating continued tightness in energy supply-demand dynamics. Yet financial market volatility intensified: the Nasdaq dropped 2.6%, major tech names sold off, and after cooling AI trades, the yen and U.S. Treasuries regained safe-haven appeal. Some analysts simulated that an AI bubble burst could drive a 30% plunge in the S & P 500 Index. Sharp swings in Treasury yields raised concern; the last similarly rapid decline occurred around the SVB collapse. Goldman Sachs recommended strategic commodity allocation, citing geopolitical and climate uncertainty as price support. Spot gold fell below $4,000; institutional commentary suggests deleveraging weakened gold’s short-term safe-haven function, though long-term strategic value remains.
Japan faces multiple challenges: core CPI rose 2.1% YoY in September, marking 61 consecutive months of increases and supporting expectations for a BoJ rate hike this year. However, Japan’s reserves of key rare-earth elements are nearing depletion, and China’s export controls (implemented per law and regulation) may constrain Japan’s high-end manufacturing. In Europe, French debt risk has begun to spill over, approaching euro-debt-crisis-era levels. ECB Executive Board member Panetta acknowledged that surging U.S. Treasury yields weigh on Europe, while stressing this is not a crisis. UK consumer confidence saw its steepest post-pandemic decline, with cost-of-living pressure still rising. Turkey’s central bank cut rates by 100 bps against the trend, while New Zealand faces renewed hiking pressure amid rebounding inflation. The IMF expects Middle East GDP to contract 1.3% this year; Iran says it is prepared for asymmetric warfare, leaving geopolitics a major source of global uncertainty. Against this backdrop, the 2026 Sustainable Global Leaders Conference focused on green transition in the AI era, with ten bank executives discussing long-term sustainability pathways.
On sector performance, this week’s market leadership centered on three tech-growth tracks, highly aligned with policy catalysts from the “AI+” initiative:Machinery-Mtl Hdlg/Autmn(G3537IG.CN) rose 14.24%, reflecting concentrated capital inflows into automation and smart-manufacturing chains amid AI-enabled manufacturing and faster industrial upgrading.Telecom-Consumer Prods(G4894IG.CN) rose 12.51%, indicating sustained strength in consumer electronics and smart terminal themes driven by AI application rollout and product innovation expectations.Computer Sftwr-Enterprse(G3583IG.CN) rose 12.35%, as demand for enterprise software and digital transformation accelerated under policy support.Overall, this week’s leading sectors were all AI- and tech-growth-centric, clearly different from the previous defensive-led structure, suggesting a phased recovery in risk appetite.
For individual stocks, the Top 33 group posted an average decline of 1.45% this week, with 12 gainers and 21 decliners. Leading stocks still outperformed major indices overall, indicating continued potential for excess return even in a downtrend. The best performer was Shanghai Fengyuzhu Exhbn(603466), up 16.22% for the week. The company belongs to Computer-Tech Services(G7392IG.CN) and focuses on planning, design, implementation, and maintenance of digital cultural display experience systems. Under the “AI+” policy catalyst, digital-tech application themes attracted capital attention. On key metrics: RS Rating = 96 and Acc/Dis Rating = A+, indicating strong price strength and relatively positive fund flow. However, O’Neil Score = 55, EPS Rating = 29, and Industry Rank = 112, suggesting weak earnings growth and limited industry support. This implies the stock is currently more theme-driven than fundamentally driven; sustainability depends on earnings verification and broader industry recovery.
Next week, 4,812 companies are scheduled to report earnings—far above 200—meaning the market is formally entering earnings season. Earnings delivery will be a core short-term driver of price volatility, and close monitoring of guidance and forward-looking commentary is recommended.
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published on October 23, 2026