Live: ASX to fall, US tech rout rattles markets

US tech rout and Chinese stocks entering bear market territory rattle global markets.

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Chinese stocks have entered bear market territory, according to ABC News — Top Stories. The benchmark CSI 300 index, which tracks 300 of the largest and most actively traded companies on the Shanghai and Shenzhen stock exchanges, fell 1.8% on Thursday. This is a sharp reversal from the rally that began in late 2024, driven by government stimulus and enthusiasm for artificial intelligence.

The sell-off has also hit Hong Kong, where the Hang Seng Tech Index fell as much as 5.3% during yesterday's session. China's sluggish domestic economy and concerns about returns on costly AI investments have weighed on investor confidence.

The US tech rout has also had an impact on global markets, with the ASX expected to fall. The sell-down in the US has been significant, with Chinese stocks being particularly affected.

The CSI 300 index fell 20% from its June peak, a significant decline. This has led to concerns about the stability of the global market and the potential impact on investor confidence.

The sell-off in Chinese stocks is a result of a combination of factors, including a sluggish domestic economy and concerns about returns on costly AI investments.

The impact of the sell-off is being felt globally, with the ASX expected to fall in response to the US tech rout and Chinese stocks entering bear market territory.