China stocks fall as financials drag; tech shares lead HK lower

SHANGHAI: China stocks fell on Thursday, as investors took profits in financial shares, while tech stocks led the Hong Kong market lower following Wall Street’s overnight weakness.

The blue-chip CSI300 Index lost 0.8 percent in its worst day in three weeks, while the Shanghai Composite Index edged down 0.1 percent. In Hong Kong, the Hang Seng Index declined 1.2 percent.

China’s financial stocks dropped 1.8 percent as investors pocketed gains following a recent rebound.

Chinese brokerages, banks and insurers were big drags for the market.

In Hong Kong, sentiment soured after overnight selloffs in US-listed, China-focused funds .

Tech shares led the decline after China tightened rules regulating transactions on internet platforms.

UBS said it remained upbeat on China stocks after a stellar performance in 2025.

UBS forecast a 14 percent 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 NVDA.O H200 chips, and was expected to mandate domestic AI chip purchases.