Published on 10/08/2026 at 01:12 am EDT
(Reuters) - China stocks fell on Thursday as traders returning from a week-long holiday faced renewed geopolitical tensions, higher global yields, and a looming earnings season that threatens still-lofty valuations of Chinese tech shares.
** China's stock benchmarks are now near where they were two years ago, when a stimulus bonanza from Beijing lit up share prices and boosted hopes for a slow bull - which is now limping in a three-month downtrend.
** The large-cap CSI300 Index lost 0.4% in morning trade. The index is struggling near a one-year low and is down roughly 15% from its June peak.
** The Shanghai Composite Index is down 0.3% while the tech-focused

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50 Index slumped nearly 4%.
** In Hong Kong, where the market fell nearly 2% during China's National Day holiday, Hang Seng lost another 2% on Thursday.
** Wang Zhuo, partner of Shanghai Zhuozhu Investment, said excessive optimism toward "hard tech" shares such as chipmakers in the first half fuelled irrationally high valuations, but "bubbles would inevitably burst."
** Following a tumble that wiped out more than one-third of its value since July 1, the

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50 Index still trades at roughly 100 times earnings.
** Risk appetite is also curbed by renewed Sino-U.S. tensions as optimism from last month's Sino-US leadership meetings faded.
** Taiwan's de facto ambassador to Washington said on Wednesday that ties with the United States remained robust after last month's summit between Donald Trump and Xi Jinping.
** And the Federal Communications Commission said on Wednesday it will vote on October 29 to bar all Chinese labs from testing electronic devices for use in the US, widening a previous action targeting Beijing.
** Traders are also monitoring Sino-EU trade talks this month as China has reportedly rejected a European Union request for voluntary curbs on hybrid car exports.
** In another damper on sentiment, China Securities said that despite a smaller chance of a follow-up U.S. rate hike this month, "rapidly rising 30-year US Treasury yields will continue to curb China stocks."
** Tech shares are among the biggest losers on Thursday, while energy, real estate and banking shares gained.
(Reporting by Shanghai newsroom; Editing by Rashmi Aich)

Sumber : Reuters