China blue chips fall to 14-month low on tech selloff
- Shanghai's tech-focused STAR50 Index fell as much as 3.6% before recouping some losses to trade 0.7% lower
HONG KONG: China and Hong Kong stocks fell on Tuesday as a selloff in AI-related shares swept across Asia, pushing China’s blue-chip index to its lowest in more than a year.
At the midday break, the blue-chip CSI300 Index was down 0.6%, hitting its weakest level since August 2025, while the Shanghai Composite Index was down 0.3% at 3,787.16, a three-month low.
Shanghai’s tech-focused STAR50 Index fell as much as 3.6% before recouping some losses to trade 0.7% lower, while the start-up board ChiNext Composite Index slipped 0.1%.
The CSI AI Index dropped 0.9% to a six-month low, and the CSI Semiconductor Index lost 0.5%, extending their losses from July peaks to more than 30%.
Market heavyweight CXMT fell as much as 5.3% to the lowest level since July despite reports of progress on its memory-chip design.
“It’s hard to say investors’ concerns about the fundamentals of these tech shares are fully priced in, even after the recent sharp correction,” analysts at Sinolink Securities said in a note.
With the AI rally also cooling in the US, Chinese tech shares will struggle to rebound in the near term, they said.
Among other losers on Tuesday, new energy vehicle (NEV) stocks dropped after China said it would lower the value-added tax export rebate from April next year.
The CSI New Energy Vehicle Index ended the morning session down 3.2%.
In Hong Kong, the benchmark Hang Seng Index was down 0.4% at 24,176.05, and the Hang Seng Tech Index was down 1.5%.
Around the region, Asian stocks fell sharply as investors fretted about the durability of the rally in AI shares and increased competition.
Japan’s Nikkei index was down 2.20% and South Korea’s benchmark KOSPI index plunged over 6%.
Comments