China stocks set to post weekly gain amid global tech selloff

SHANGHAI: China and Hong Kong stocks slipped on Friday, but were on track to post modest weekly gains, as investors largely brushed off concerns over a global technology selloff potentially impacting Chinese markets.

• China’s blue-chip CSI300 Index and the Shanghai Composite Index both edged down 0.2%, each, by the lunch break, while the Hong Kong benchmark Hang Seng was down 1.1%.

• So far this week, the CSI300 Index and the Hang Seng have risen around 1% each.

• In contrast, tech-heavy stock markets in the US and other parts of Asia were bracing for their heaviest weekly falls in seven months on Friday, as investors have turned uneasy about how far the rally in artificial intelligence stocks has run.

• Foreign institutional investors added further positions in Chinese equities in the third quarter with their underweight reduced from -1.6% to -1.3%, UBS analysts said in a note.

• The top 40 global investors’ Chinese equity holdings rose to the highest level since the first quarter of 2023, they said.

• China’s tech-focused STAR50 Index was up nearly 1% this week.

• The Trump administration said on Thursday it would pursue negotiations with China over its dominance of ship building and ocean logistics as it formalized plans for a one-year pause on US port fees on China-linked vessels as part of a broader deal to reduce trade tensions.

• Onshore semiconductor shares were little changed after media reported the White House has told others in the federal government it won’t allow Nvidia to sell its latest scaled-down AI chips to China.

• Tech majors traded in Hong Kong fell 2%, after a near 3% rally the previous day.

• Meanwhile, China’s exports unexpectedly slumped in October.