China's CSI 300 Enters 12th Consecutive Weekly Decline Amid Global AI Selloff

Chinese stocks extended their historic losing streak to 12 consecutive weeks on Friday, October 30, as a global retreat from artificial intelligence investments pushed the country's blue-chip benchmark toward a one-year low.

The CSI 300 Index fell 1.4% during Friday's session, bringing its October decline to approximately 8.5%, its steepest monthly loss in more than a decade. Over the past 12 weeks, the benchmark has shed 15%.

According to Reuters' October 30 market report, the latest downturn reflects growing concerns about AI spending returns, with technology shares facing fresh selling pressure across Asia, Europe and the United States.

The CSI 300, which tracks major companies listed in Shanghai and Shenzhen, has now recorded its longest consecutive weekly decline since its launch in 2005.

The Shanghai Composite also dropped 1.4% on Friday, while Shenzhen's ChiNext Index plunged 4.1%, highlighting the particularly severe pressure on growth-oriented companies.

The losses extend China's broader stock market correction, which pushed the CSI 300 into bear-market territory earlier this month.

Technology companies remain among the hardest hit. The STAR 50 index has previously lost around 40% from its summer peak, with roughly $480 billion erased from valuations during the decline.

The latest selloff has intensified concerns surrounding Chinese AI stocks, particularly semiconductor and data-center equipment suppliers.

Optical module manufacturer Eoptolink Tech fell approximately 14% on Friday, bringing its October losses to around 50%. The CSI 5G Communications Index also dropped 6.2%.

The losses come despite reported attempts by Chinese authorities to stabilize equities.

Earlier this week, state-backed investors were estimated to have purchased as much as $25.5 billion in stocks, although the buying has not reversed the broader decline.

China's latest losses coincided with renewed pressure on American technology companies following disappointing reactions to major quarterly earnings reports.

Amazon shares dropped approximately 7% in premarket trading after investors questioned its expanding AI infrastructure commitments. Intel declined more than 20%, while Alphabet's earlier selloff reflected concerns about enormous capital expenditures.

The broader issue is whether spending on chips, cloud computing and data centers will generate sufficiently strong returns.

The uncertainty follows Wall Street's recent AI selloff, which has increasingly focused on cash-flow pressures rather than the growth of AI demand itself.

Asian chipmakers faced similar pressure Friday.

South Korea's SK Hynix dropped more than 7%, while Japan's Nikkei 225 closed 2.1% lower as technology stocks retreated.

South Korea's Kospi lost approximately 3.5%, extending its October decline to 16.2%.

The synchronized downturn illustrates how concerns about AI valuations have spread through companies supplying the global computing industry.

Not every Chinese equity market followed the same direction.

Hong Kong's Hang Seng Index gained approximately 1.5% on Friday, while mainland benchmarks recorded substantial losses. The contrasting performance suggests investors are becoming more selective rather than indiscriminately abandoning Chinese assets.

Hong Kong-listed technology companies also rebounded, despite remaining under pressure from earlier losses.

UBS analyst Kenneth Fong argued that some Chinese internet stocks may already reflect unusually pessimistic assumptions about future AI spending and profitability.

However, cheaper valuations alone do not guarantee a recovery.

China's domestic economy continues to face weak consumer demand, property-sector difficulties and disappointing corporate earnings.