HONG KONG: Chinese stocks fell to a three-week low on Thursday, dragged down by a sharp selloff in chipmakers. Hong Kong shares rebounded on a recovery in internet heavyweights.
** China's blue-chip CSI300 Index dipped 3% to the lowest level since June 12. The Shanghai Composite Index lost 2%.
** The tech-focused Star 50 Index lost 7.7%, the biggest single-day decline since April 2025, to slip from a record high.
** The CSI Semiconductor Index also retreated from an all-time peak, plunging 9.4% in its biggest one-day decline in nearlyfour years. The index has surged nearly 110% 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 by 6.7% to 10%.
** The banking indexes bucked broader weakness, adding 1.2%.
** "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.
** 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 0.8% at 23,055.03. Market heavyweight Alibaba added 1.8% and Meituan climbed 3.4%.
** Weakness in chipmakers and AI names limited the gains, with the Hang Seng Tech Index down 0.4% and AI sector index down more than 7%.
** 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
