SHANGHAI: China’s mainland stocks fell to end the week lower on Friday, tracking weakness across broader Asian markets that saw investors taking profits on AI and semiconductor shares amid a strong rally this year.
China’s blue-chip CSI300 Index closed 1.8 percent down, while the Shanghai Composite Index lost 0.7 percent. Hong Kong’s benchmark Hang Seng was down 1.2 percent.
For the week, the CSI300 Index and the Hang Seng Index fell 1.5 percent and 0.9 percent, respectively.
Chinese onshore AI and communication shares tumbled in the afternoon session, down 3.6 percent and 4 percent, respectively, following a softer-than-expected AI outlook from US chipmaker Broadcom and broader declines in AI supply chain globally.
The few bright spots were financials and healthcare shares, up 0.7 percent and 0.5 percent, respectively.
“The tech sector remains the core driver of long-term outperformance in China’s equity markets,” said Janice Hu, UBS China president.
“We’ve seen technological innovation and semiconductor supply chain localisation over the past, and we expect continued strong policy support. Combined with ample domestic liquidity, this has allowed China’s big tech sector to demonstrate a unique pace of monetisation.”
Onshore chip stocks fell 4.7 percent, after gaining nearly 50 percent year-to-date. The tech-focused STAR50 index was down 4.0 percent.
Hong Kong-listed shares of AIA Group, HSBC Holdings and Standard Chartered PLC fell sharply on Friday on growing concerns that Beijing’s tighter capital controls could dent the business of global financial firms with exposure to mainland China.
Tech majors listed in Hong Kong were down 1.8 percent.
China’s central bank resumed injections via its daily liquidity operations on Friday, following a two-day hiatus.
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