China stocks fall to 14-month low as tech shares extend slide

By Reuters News23 hours ago Updated

By Jiaxing Li

HONG KONG, Oct 27 (Reuters) - 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 .SSEC closed down 1.3% at 3,648.30, the lowest since August 2025. The blue-chip CSI300 Index .CSI300 was also down 1.3%.

** The start-up board ChiNext Composite index .CNT fell 3.4% and Shanghai's tech-focused STAR50 index .STAR50 slumped 4.8% to the lowest since March. Earlier, the indexes rose as much as 1.2% and 0.8%, 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 .CSI931865 down 5.8% at a fresh six-month low and the CSI AI Index .CSI930713 down nearly 4%.

** The defensive CSI Banks Index .CSI399986 gained 1.3%.

** In Hong Kong, the benchmark Hang Seng Index .HSI was down 0.7%, and the Hang Seng Tech Index .HSTECH declined 1.5%.

** "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.