China stocks retreat as chipmakers tumble from record highs; Hong Kong rebounds

HONG KONG: Chinese stocks fell on Thursday, dragged down by a sharp selloff in chipmakers, while Hong Kong shares rebounded on a recovery in internet heavyweights.

China’s blue-chip CSI300 Index was down 1.9% by the lunch break, on track for their biggest single-day drop in a week.

The Shanghai Composite Index lost 0.9%.

The tech-focused Star 50 Index lost 4.6%, pulling back from a record-high hit in the previous session.

The CSI Semiconductor Index also retreated from an all-time high, plunging 6.8% in its biggest one-day decline since October 2025.

The index has surged 112% so far this year. Chipmaker Naura snapped a 10-day rally that had powered it to record highs, tumbling by the daily 10% trading limit. Peers including SMIC, Giga Device and Hua Hong Semiconductor declined 3.4% to 9.2%.

“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.

The auto and the banking indexes bucked broader weakness, adding 1% and 0.3%, respectively.

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 1.2% at 23,154.41. The Hang Seng Tech Index added 0.6% to continue its recovery from a one-year low.

Market heavyweight Alibaba added 2.7% and Tencent climbed 2%.

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.‑Reuters