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

HONG KONG, Oct 13 (Reuters) - 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%.