HONG KONG: Chinese stocks gave up their earlier gains to close at a 14-month low on Tuesday, with tech shares resuming their decline after a brief rise on an uptick in sentiment in the region.
The Shanghai Composite Index closed down 1.3 percent at 3,648.30, the lowest since August 2025. The blue-chip CSI300 Index was also down 1.3 percent.
The start-up board ChiNext Composite index fell 3.4 percent and Shanghai’s tech-focused STAR50 index slumped 4.8 percent to the lowest since March. Earlier, the indexes rose as much as 1.2 percent and 0.8 percent, respectively.
Around the region, Asian stocks climbed on Tuesday as AI firm Anthropic’s eagerly anticipated IPO filing lifted risk appetite ahead of tech earnings that will be a test for the AI trade, and central bank meetings that will influence near-term interest rates.
The selloff in Chinese AI-related shares, however, continued, with the CSI Semiconductor Index down 5.8 percent at a fresh six-month low and the CSI AI Index down nearly 4 percent.
The defensive CSI Banks Index gained 1.3 percent.
In Hong Kong, the benchmark Hang Seng Index was down 0.7 percent, and the Hang Seng Tech Index declined 1.5 percent.
“The market may stage a short-term rebound after the recent selloff, but a more sustained recovery could require further de-leveraging over the medium term as some crowded positions have yet to be fully cleared,” analysts at Sinolink Securities said in a note.
China’s central bank said on Monday it had decided to establish a swap facility to provide emergency liquidity to non-bank financial institutions facing large-scale redemptions.
“The establishment of such facilities to address large redemptions at non-bank financial institutions could keep short-term liquidity conditions accommodative,” Huajin Securities analysts said in a note.
Elsewhere, data released on Tuesday showed China’s industrial profits grew at a faster pace in September, but the sectoral divide remained pronounced.