HONG KONG: Chinese stocks fell to a three-week low on Thursday, dragged down by a sharp selloff in chipmakers. Hong Kong shares rebounded on a recovery in internet heavyweights. China’s blue-chip CSI300 Index dipped 3percent to the lowest level since June 12. The Shanghai Composite Index lost 2percent.
The tech-focused Star 50 Index lost 7.7percent, the biggest single-day decline since April 2025, to slip from a record high. The CSI Semiconductor Index also retreated from an all-time peak, plunging 9.4percent in its biggest one-day decline in nearlyfour years. The index has surged nearly 110percent so far this year.
Chipmaker Naura snapped a 10-day rally that had powered it to record highs, tumbling by the daily 10percent trading limit. Peers, including SMIC, Giga Device, and Hua Hong Semiconductor, declined by 6.7percent to 10percent. The banking indexes bucked broader weakness, adding 1.2percent. “Technology stocks cooled sharply as markets underwent a period of rotation,” analysts at Huatai Futures said in a note.
“However, the shift is probably short-lived, with the current pullback offering a favourable entry point for medium- to long-term positioning,” they added.
Elsewhere in the onshore market, China Resources New Energy shares tripledin their listing debut after launching Asia’s biggest IPO of 2026. In Hong Kong, the benchmark Hang Seng Index was up 0.8percent at 23,055.03. Market heavyweight Alibaba added 1.8percent and Meituan climbed 3.4percent. Weakness in chipmakers and AI names limited the gains, with the Hang Seng Tech Index down 0.4percent and AI sector index down more than 7percent.
Looking ahead, investors are waiting to see whether China announces policy support for an uneven economic recovery at this month’s Politburo meeting. “We continue to see only piecemeal consumer support, with July as the earliest window for an LPR cut,” Citi said in a note.
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