China blue chips fall to 14-month low on tech selloff

By Reuters News

- China and Hong Kong stocks fell on Tuesday as a selloff in AI-related shares swept across Asia, pushing China's blue-chip index to its lowest in more than a year.

** At the midday break, the blue-chip CSI300 Index .CSI300 was down 0.6%, hitting its weakest level since August 2025, while the Shanghai Composite Index .SSEC was down 0.3% at 3,787.16, a three-month low.

** Shanghai's tech-focused STAR50 Index .STAR50 fell as much as 3.6% before recouping some losses to trade 0.7% lower, while the start-up board ChiNext Composite Index .CNT slipped 0.1%.

** The CSI AI Index .CSI930713 dropped 0.9% to a six-month low, and the CSI Semiconductor Index .CSI931865 lost 0.5%, extending their losses from July peaks to more than 30%.

** Market heavyweight CXMT 688825.SS fell as much as 5.3% to the lowest level since July despite reports of progress on its memory-chip design.

** "It's hard to say investors' concerns about the fundamentals of these tech shares are fully priced in, even after the recent sharp correction," analysts at Sinolink Securities said in a note.

** With the AI rally also cooling in the US, Chinese tech shares will struggle to rebound in the near term, they said.

** Among other losers on Tuesday, new energy vehicle (NEV) stocks dropped after China said it would ​lower the ‌value-added tax export rebate from ​April next year. The CSI New Energy Vehicle Index .CSI399976 ended the morning session down 3.2%.

** In Hong Kong, the benchmark Hang Seng Index .HSI was down 0.4% at 24,176.05, and the Hang Seng Tech Index .HSTECH was down 1.5%.

** Around the region, Asian stocks fell sharply as investors fretted about the durability of the rally in AI shares and increased competition. Japan's Nikkei index .N225 was down 2.20% and South Korea's benchmark KOSPI index .KS11 plunged over 6%.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.