China blue-chips fall as financials drag; Hong Kong down

SHANGHAI: China’s blue-chip stock index fell on Thursday, as investors took profits in financial shares, while Hong Kong equities dropped following Wall Street’s overnight weakness.

• The blue-chip CSI300 Index lost 0.5% by the lunch break, while the Shanghai Composite Index was flat.
• In Hong Kong, the Hang Seng Index declined 1.2%.
• China’s financial stocks dropped 1.5%, on track for their worst day in nearly seven weeks, as investors pocketed gains following a recent rebound.
• Chinese brokerages, banks and insurers were big drags for the market.
• In Hong Kong, sentiment was soured by overnight selloffs in US-listed, China-focused funds .
• UBS said it remained upbeat on China stocks after a stellar performance in 2025.
• UBS forecast a 14% profit growth this year for companies underlying MSCI China, according to Janice Hu, China Country Head, UBS.
• “The Hong Kong market remains pretty attractive in 2026,” Hu said during a presser on Wednesday, citing a rush by Chinese companies to expand overseas, global investors’ need for asset allocation and Hong Kong’s unique status as a connector.
• China’s artificial intelligence stocks rose on Thursday, after the country vowed to achieve secure and reliable supply of key core AI technologies by 2027.
• Shares of Chinese makers of semiconductor materials, including Tangshan Sunfar Silicon Industries Co and Hubei Heyuan Gas surged, after China’s commerce ministry said it was launching an anti-dumping probe into imports of chemicals used in chipmaking.
• Chinese chipmakers also climbed on news that Beijing had asked some Chinese tech companies to halt orders for Nvidia’s H200 chips, and was expected to mandate domestic AI chip purchases.
• In Hong Kong, three Chinese technology firms - AI startup Knowledge Atlas Technology, semiconductor firm Shanghai Iluvatar CoreX and surgical robotics company Shenzhen Edge Medical - debuted higher after raising a combined $1.19 billion, setting the tone for what could be yet another busy year for new listings in Hong Kong.‑Reuters