Chinese Tech Stocks Take a Dive Amid Semiconductor Selloff

Chinese stocks reached a three-week low due to a steep selloff in chipmakers, although Hong Kong shares rose. The Tech-focused Star 50 Index suffered its largest drop since 2025, while semiconductor indexes fell sharply. Meanwhile, banking indexes saw a slight uptick.

On Thursday, Chinese stocks tumbled to a three-week low, primarily impacted by a sharp decline in chipmakers. However, Hong Kong stocks showed resilience, rebounding on the strength of internet heavyweights.

China's blue-chip CSI300 Index fell 3%, reaching its lowest point since June 12. The Shanghai Composite Index also dropped by 2%. The tech-centered Star 50 Index recorded a 7.7% plunge, its most significant single-day decline since April 2025, retracting from a previous record high.

The CSI Semiconductor Index faced a steep fall from its all-time high, plummeting 9.4%, marking nearly four years' biggest one-day drop. Despite its strong performance earlier this year, chipmaker Naura saw a dramatic end to its 10-day rally, losing 10%. Peers like SMIC, Giga Device, and Hua Hong Semiconductor also retreated by 6.7% to 10%. In contrast, banking indexes showed an upward trend with a 1.2% increase.